KUALA LUMPUR: DRB-Hicom Bhd clarified that the rights to Geely’s best-selling model, Boyue, valued at RM600mil as stated during an analysts briefing on May 25, 2017, was merely an assumption.
It was an attempt by the management to illustrate how the assumed valuation of Boyue would lead to the implied valuation of Proton, said DRB in a filing with Bursa Malaysia yesterday.
The company was replying to a query in an article on the sale of the 49.9% in Proton to China”s Geely which stated: “DRB told analysts the 49.9% stake was valued at around RM770 million. Geely would pay RM170mil cash and give Proton the rights to its best-selling model, the Boyue, valued at RM600mil.
“It seems strange that DRB would disclose the pricing details to analysts and not shareholders.” The article was entitled, “More Transparency in Proton-Geely Deal, Please!” and appeared in a local business weekly.
DRB said during the same meeting, the management also highlighted that it was currently in the process of estimating the value of in-kind injection of the Boyue model.
“The company will make the appropriate announcements to Bursa Securities in a timely manner in accordance with the Bursa Securities Listing Requirements and upon execution of the definitive agreements and/or as and when necessary,” it added. – Bernama