Thursday, 15 March 2012

DRB HICOM buys Proton: deal to be completed in seven days

KUALA LUMPUR: DRB HICOM Bhd expects to complete the acquistion of Proton Holdings Bhd, the country's national carmaker within the next seven days.

The acquistion will mark, the second time in which DRB HICOM has a controlling stake in the national carmaker.

DRB-HICOM was the first controlling owner of Proton, during the former's old form of Hicom Holdings Bhd in early mid-1980s. (Hicom later merged with Diversified Resources Bhd (DRB) to create the DRB-HICOM group). The group gave up its stake when the 1997/1998 Asian financial crisis took its toll on many regional companies.

DRB HICOM shareholders today approved the acquisition on a 42.7 per cent stake in Proton. DRB HICOM is buying the stake from Khazanah Nasional Bhd for RM5.50 a share.

DRB HICOM's group managing director Datuk Mohd Khamil Jamil said that the decision to buy Proton was very much business diriven.

With the acquisition of the 42.7 per cent stake, DRB HICOM in total will have a 50.01 per cent stake in the national carmaker, having bought a 7.7 per cent stake from the market, earlier in the year.

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