DRB-HICOM shares slip on news of Geely pullout
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.
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’.