Geely completes acquisition of 49.9pc stake in PHB

KUALA LUMPUR: DRB-HICOM Bhd has completed the proposed share subscription of 49.9 per cent 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 with Bursa Malaysia yesterday, DRB-HICOM said its equity interest in PHB had been reduced to 50.1 per cent with the remaining 49.9 per cent equity interest in PHB now held by Geely International (Hong Kong) Ltd, a wholly-owned unit of Geely.

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

DRB-HICOM said PHB had completed the proposed divestment of 51 per cent issued shares in Lotus Advance Technologies and 51 per cent preference shares in Lotus Cars Ltd to Geely. PHB also completed the proposed divestment of 49 per cent issued shares in Lotus Advance Technologies and 49 per cent 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 had agreed not to transfer the Lotus Cars preference shares to Geely and Etika, respectively, on the completion date pending further talks between the parties, without any changes to the total sale consideration for the proposed divestment, it said.

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