Geely Reportedly Buying Proton Off DRB-Hicom

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Geely Reportedly Buying Proton Off DRB-Hicom

A report from Reuters has mentioned that Geely will reportedly be taking over Proton from DRB-Hicom, beating out rival PSA Group. The company will reportedly acquire a 49% stake in Proton.

Earlier, DRB-Hicom requested for the trading of its shares to be suspended pending an announcement. The company's spokesperson could not be reached after office hours.

Elsewhere, Proton has reportedly requested for more financial aid from the government. The amount requested is said to be at RM1.7 billion, for supporting its operation costs and poor sales. However, a report from The Edge said that the company will not be utilizing all the financial aid at one go. Instead, according to sources familiar with the matter, Proton will be using the funds as needed while its parent company, DRB-Hicom secures a deal for the foreign strategic partner. On top of that, the new loan will be used to repay vendors and other creditors.

Sources familiar with the bidding process added that Geely hopes to improve Proton's presence overseas, on top of improving Proton's overall sales, with the help of Geely's own technology. 

Related: Geely – Fridge-maker To Car-maker In Just 12 Years, Who Are They?



Eric

Eric

Prior to covering the automotive scene, Eric was the tech support fella. Now he's either busy driving or editing videos.


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