Friday 29 Mar 2024
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KUALA LUMPUR (April 19): DRB-Hicom Bhd's 50.1%-owned subsidiary Proton Holdings Bhd is aiming to drive back into Iran, as it sets up a new subsidiary there.

Proton’s wholly-owned unit Proton Marketing Sdn Bhd had incorporated a 90%-owned company called Proton Motor Parsian Co Ltd (PMPC) on April 10, DRB-Hicom said in a filing with Bursa Malaysia today.

“The intended activities of PMPC are to undertake business in the field of car assembly, with completely knocked down (CKD) and semi knocked down (SKD) parts, production, exports and imports, as well as car accessories and spare parts,” DRB-Hicom said.

In September last year, DRB-Hicom announced Proton had dissolved its indirect, wholly-owned and dormant Iranian subsidiary, Proton Motors Pars Co, that was set up in August 2011.

DRB-Hicom had announced in January 2017 that it had no intention of activating the company to carry on business or undertake operations in the future.

However, its 2012 annual report had showed that the company’s principal activities were the sales of motor vehicle-related spare parts and accessories. 

“The incorporation will not have any material effect on the earnings per share, net assets per share, share capital, gearing and substantial shareholders’ shareholdings of DRB-Hicom for the financial year ending March 31, 2019,” the group said.

Having considered all aspects of the incorporation, the board of directors of DRB-Hicom is of the opinion that the incorporation is in the best interest of the company, the filing added.

DRB-Hicom shares closed down 2 sen or 0.91% at RM 2.18 today, bringing a market capitalisation of RM4.28 billion.

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