China's Geely to hold Proton and Lotus shares, says DRB-Hicom

-A +A

KUALA LUMPUR (Sept 29): China's Zhejiang Geely Holding Group's (Geely) wholly-owned subsidiary Geely International (Hong Kong) Ltd will receive and hold shares in Proton Holdings Bhd and Lotus Advance Technologies Sdn Bhd (Lotus) respectively, according to DRB-Hicom Bhd. 

In a filing with Bursa Malaysia today, DRB-Hicom said its equity interest in Proton is now reduced to 50.1% and the remaining 49.9% equity interest in Proton is now held by Geely International (Hong Kong) Ltd.

Meanwhile, Lotus has ceased to be an effective wholly-owned subsidiary of DRB-Hicom.

DRB-Hicom, together with Geely and Etika Automotive Sdn Bhd, 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.

On May 24, DRB-Hicom proposed to sell a 49.9% stake in Proton to Geely, in a bid to boost Proton’s sales and bottom line.

The parties had signed a heads of agreement for the stake sale, with a definitive agreement to be signed in July. Under the deal, DRB-Hicom said Proton would also sell a 51% stake in British car maker Lotus to Geely.

All structured warrants relating to DRB-HICOM have also been halted, DRB-Hicom said in a bourse filing today.

In a separate filing, DRB-Hicom said trading of DRB-Hicom Bhd shares has been suspended from 10.32am to 11.32am today.

At 11.10am, DRB-Hicom shares rose one sen or 0.62% to RM1.61 with 180,900 shares done, for a market capitalisation of RM3.09 billion.