DRB-HICOM Bhd has completed the proposed share subscription for a 49.9% stake, or 547.02 million shares, in Proton Holdings Bhd (PHB) by  Zhejiang Geely Holding Group Co Ltd (Geely)  for RM460.3 million.

In a filing to Bursa Malaysia today, DRB-HICOM said its equity interest in PHB had now been reduced to  50.1% and the remaining 49.9% equity interest in PHB was now held by Geely International (Hong Kong) Ltd (a wholly-owned unit of  Geely).

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

DRB-HICOM said PHB had completed the proposed divestment of 51% issued shares in Lotus Advance Technologies and 51% preference shares in Lotus Cars Ltd to  Geely.

PHB has also completed the proposed divestment of 49% issued shares in Lotus Advance Technologies and 49% in Lotus Cars Preference shares to Etika Automotive Sdn Bhd, it said.

It said the proposed divestments by PHB of interests in Lotus Advance Technologies amounted to £100 million (RM567 million).

DRB-HICOM, Geely and Etika have agreed not to transfer the Lotus Cars preference shares to Geely and Etika respectively on the completion date pending further discussions between the parties, without any changes to the total sale consideration for the proposed divestment., it said. 

Geely has nominated its wholly-owned unit, Geely International (Hong Kong) Ltd, to receive and hold the shares in PHB and Lotus Advance Technologies Sdn Bhd.

As at noon DRB-HICOM shares rose four sen to RM1.64. – Bernama, September 29, 2017.