Photo of Proton showroom in Shah Alam for the story of Proton buy over by Geeely...... Sam Tham/Star Publication
KUALA LUMPUR: DRB-Hicom Bhd
has received a letter from Finance Ministry (MOF) approving a research and development (R&D) reimbursement grant for R&D carried out by Proton Holdings Bhd’s subsidiary Perusahaan Otomobil Nasional Sdn Bhd (PONSB).
In a filing with Bursa Malaysia, DRB-Hicom said this represented the culmination of its extensive application process, dating back to Aug 19, 2011, when it applied for reimbursement of R&D expenditure amounting to approximately RM3.7bil.
“At the time of the initial application, PONSB and its holding company, Proton Holdings Bhd had a different ultimate holding company and were not part of the DRB-Hicom Group,” it said.
The group said the value of the reimbursement grant was RM1.1bil and was to be paid in a single lump sum directly to PONSB, a wholly-owned subsidiary of Proton.
It said the grant would be disbursed upon completion of the definitive agreements relating to the entry of the proposed foreign strategic partner into Proton which was announced by DRB-Hicom on May 24, 2017.
DRB-Hicom said PONSB would use the grant proceeds to deleverage to the maximum extent by reducing its existing financial liabilities. - Bernama
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