DRB-Hicom completes stake sale in Proton for RM460m

Zhejiang Geely chairman Li Shufu

KUALA LUMPUR: DRB-Hicom Bhd has completed its proposed divestment of 547 million shares or 49.9% stake in Proton Holdings Bhd to Zhejiang Geely Group Holding Co for a sum of RM460.3mil.

In a filing with Bursa Malaysia on Friday, DRB-Hicom also announced that Proton has completed its proposed divestment of 51% issued shares in Lotus Advance Technologies Sdn Bhd to Zhejiang Geely and the remaining 49% issued shares in Lotus Advance Technologies to Etika Automotive Sdn Bhd.

However, the parties involved have agreed not to transfer the preference shares in Lotus Cars Ltd to Geely and Etika on the completion date pending further discussions between the parties,  without any changes to the total sale consideration for the proposed divestment. .

"Accordingly, DRB-HICOM’s equity interest in Proton Holdings Bhd is now reduced to 50.1%, and the remaining 49.9% equity interest in Proton is now held by Geely International (Hong Kong) Ltd (a wholly-owned subsidiary of Zhejiang Geely Holding Group Co Ltd)."

Meanwhile, Lotus Advance Technologies Sdn Bhd has ceased to be an effective wholly-owned subsidiary company of DRB-HICOM.

 Trading in DRB-Hicom was halted at 10.32am and resumed from 11.32am on Friday. At 11.34am, the counter was up four sen or 2.5% to RM1.64 on the back of 453,300 shares done.