DRB-HICOM shares slip on news of Geely pull­out

New Straits Times - - Business -

KUALA LUMPUR: DRB-HICOM Bhd shares fell in late trade yes­ter­day af­ter China bil­lion­aire Li Shufu re­port­edly said he was plan­ning to pull Zhe­jiang Geely Hold­ing Group Co out of a bid for Pro­ton Hold­ings Bhd.

DRB-HICOM, which owns Pro­ton, eased 3.45 per cent, or five sen, to RM1.40 in ac­tive trade in­volv­ing 14.38 mil­lion shares.

Bloomberg quoted Li as say­ing the de­ci­sion was due to DRB-HICOM that kept chang­ing its plans.

“They keep chang­ing, today it’s this, to­mor­row it’s that. They haven’t de­cided what they want,” said Li in Bei­jing yes­ter­day.

Var­i­ous re­ports have placed Geely and France’s Groupe PSA as lead­ing par­ties to be­come Pro­ton’s part­ner.

Geely and France’s PSA Group had sub­mit­ted bids to buy a stake in Pro­ton, which needs to bring in a for­eign part­ner to help in re­search and de­vel­op­ment as part of con­di­tions it agreed to in re­turn for a RM1.25 bil­lion soft loan from the gov­ern­ment.

Bloomberg re­ported that Pro­ton chief ex­ec­u­tive of­fi­cer Datuk Ah­mad Fuaad Ke­nali and a com­pany spokesman de­clined to com­ment on Li’s re­marks.

DRB-HICOM had stated that Pro­ton’s strate­gic part­ner would be an­nounced by June.

BLOOMBERG PIC

Zhe­jiang Geely Hold­ing Group owner Li Shufu has re­port­edly said he is plan­ning to pull out of a bid for Pro­ton Hold­ings Bhd as DRB-HICOM Bhd ‘keeps chang­ing its plans’.

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