DRB-Hicom warrant not expensive

INTERESTS in DRB-Hicom Bhd shares and warrants could pick up in the near term after its 32 per cent-owned associate company Edaran Otomobil Nasional Bhd (EON) secured a long-awaited motor sales agreement with Perusahaan Otomobil Nasional Bhd (Proton) earlier this week. 

Market observers say DRB-Hicom stands to benefit indirectly from the deal as it will result in higher earnings contribution from EON given that the latter will be allowed to sell more Proton car models until December 2009, without having to share the cost of development, as originally proposed.