DRB-HICOM to dis­cuss Geely, PSA bids to­mor­row?

New Straits Times - - Business -

KUALA LUMPUR: Pro­ton Hold­ings Bhd’s par­ent DRB-HICOM Bhd plans to meet this week to dis­cuss pro­pos­als from China’s Zhe­jiang Geely Hold­ing Group Co and France’s PSA Group, ac­cord­ing to Bloomberg.

The meet­ing would take place to­mor­row, the wire ser­vice quoted a per­son with knowl­edge of the sit­u­a­tion, ask­ing not to be iden­ti­fied be­cause the de­lib­er­a­tions were pri­vate.

Pro­ton is seek­ing to sell a stake of as much as 51 per cent to a foreign buyer in or­der to keep fac­to­ries open and de­velop new mod­els.

Pro­ton’s search for a buyer be­gan last year.

The gov­ern­ment stepped in last April to make a RM1.5 bil­lion loan to the na­tional car­maker, which al­lowed it to avoid de­fault­ing on obli­ga­tions to sup­pli­ers.

The deal came with a sig­nif­i­cant catch — Pro­ton would need to find a ma­jor new in­vestor to put it on a more sus­tain­able fi­nan­cial foot­ing.

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