DRB-Hicom completes stake sale in Proton for RM460.3 mln


Syndicated News
Written by Syndicated News

KUALA LUMPUR, Sept 29 2017 : DRB-Hicom Bhd has completed the proposed share subscription of 49.9 per cent stake, or 547.02 million shares, in Proton Holdings Bhd (PHB) by  Zhejiang Geely Holding Group Co Ltd (Geely)  for RM460.3 million.

In a filing to Bursa Malaysia today, DRB-Hicom said, its equity interest in PHB has now been reduced to  50.1 per cent and the remaining 49.9 per cent equity interest in PHB was now held by Geely International (Hong Kong) Ltd (a wholly-owned unit of  Geely).

Meanwhile, Lotus Advance Technologies Sdn Bhd has ceased to be an effective wholly-owned unit of DRB-Hicom, it said.

DRB-Hicom said PHB has completed the proposed divestment of 51 per cent issued shares in Lotus Advance Technologies and 51 per cent preference shares in Lotus Cars Ltd to  Geely.

PHB has also completed the proposed divestment of 49 per cent issued shares in Lotus Advance Technologies and 49 per cent in Lotus Cars Preference shares to Etika Automotive Sdn Bhd, it said.

It said the proposed divestments by PHB of interests in Lotus Advance Technologies amounted to £100 million (£1 = RM5.67).

DRB-Hicom, Geely and Etika have agreed not to transfer the Lotus Cars preference shares to Geely and Etika respectively on the Completion Date pending further discussions between the parties, without any changes to the total sale consideration for the proposed dvestment., it said. 

Geely  has nominated its wholly-owned unit, Geely International (Hong Kong) Ltd, to receive and hold the shares in PHB and Lotus Advance Technologies Sdn Bhd.

As at noon DRB-Hicom shares rose four sen to RM1.64. – Bernama



About the author

Syndicated News

Syndicated News

News sourced from Bernama, Reuters, AFP and other accredited news agencies, including credible blogsites and news portals.