Chinese automaker buys stake in Malaysia's Proton

Chinese automaker buys stake in Malaysia's Proton

DRB-Hicom Bhd and Zhejiang Geely Holdings Group have inked a definitive agreement under which the latter will acquire a 49.9% stake in the national auto manufacturer for RM460.3mil.

Malaysia's national carmaker Proton is now partly owned by Chinese automaker Zhejiang Geely Holdings Group after the signing of a deal with DRB-Hicom yesterday.

The deal was valued at 460.3 million ringgit (108 million US dollars), including a cash injection of 170.3 million ringgit into Proton by Geely, and a sports utility vehicle platform that is worth 290 million ringgit, DRB-Hicom Managing Director Syed Faisal Albar told a press conference following the signing ceremony.

He said this at a press conference after the signing of the definitive agreement for Geely to take a 49.9 per cent equity in Proton Holdings Bhd worth RM460.3 million, here today. It has overseen an extensive refresh of the Volvo line-up, and also created Lynk & Co, an all-new automotive brand designed to sit between the Geely's own range of cars and Volvo. "I can not give you a definitive timeline now, but rest assured we have a good, solid plan that we will put in place soon, and we will announce it in more detail in due course".

"Proton's status as Malaysia's national vehicle is secure, and DRB-Hicom remains a majority shareholder", said Syed Faisal.

Can Amazon Persuade Enough People To Buy Fresh Food Online?
Say "Whole Foods" and some envision a gastronomic nirvana, overflowing with a healthy bounty worth a premium price. And Amazon has plenty to learn about bricks-and-mortar grocery. "This is not - this is not a Tinder relationship".

Meanwhile, Geely chairman Li Shufu said the group's priority is to turnaround both Proton and Lotus. Geely's main goal with both Proton and Lotus is to ensure both brands are profitable and enjoy sustainable growth, objectives that will be achieved in part by embracing electrification and lightweighting technologies, along with artificial intelligence. "We will work together to make the most of our respective strengths".

But purchasing a controlling stake in British sports-car maker Lotus may be the biggest coup for Geely, which is known mainly for producing low-end cars in its home country. This became possible after the automaker was acquired by Chinese firm Geely, which owns Volvo.

"For over the last ten years, Geely has quietly but successfully emerged as a major player in the automotive market".

Prime Minister Najib Razak said Proton has been "hobbled by an out-of-date, inward looking and commercially unworkable idea of what constitutes success for a national carmaker".

"DRB-Hicom will also be repaying RM350 million of the government's RM1.5 billion soft loan due in 2023 in advance, to help with Proton's reorganisation", he said.

Related Articles

  • U.S.  officials to lift Yellowstone grizzly bear protections

    U.S. officials to lift Yellowstone grizzly bear protections

    The question that has plagued every conversation about Yellowstone grizzlies for well over a year was finally answered today. Advocates have spoken out against the federal government's decision, expressing worry over the future of the grizzly bears .
    Hike rolls out redesigned Messenger app; brings in-app payments system

    Hike rolls out redesigned Messenger app; brings in-app payments system

    Hike, founded in 2012 by Kavin Bharti Mittal , follows the lead of China's WeChat, another messaging app and WhatsApp rival. Hike 5.0 now features a new slick look, with an emphasis on personalisation with App Themes.
    Alex Jones interview draws 3.5 million viewers

    Alex Jones interview draws 3.5 million viewers

    Relatives of the shooting victims have called Jones' comments hurtful and said he has encourage people to harass them. Kelly wrote of her battles with Trump and Ailes in her best-selling memoir from 2016, "Settle for More".
  • Here are the first vicious National Basketball Association  shots at Lonzo and LaVar Ball

    Here are the first vicious National Basketball Association shots at Lonzo and LaVar Ball

    So when do the 76ers play the Lakers? But Lonzo has a lot to show and prove as a springboard for what the Ball brothers can do. The Lakers brought in each of the four in for individual workouts, including Ball .
    World's best airlines announced-and this is the winner…

    World's best airlines announced-and this is the winner…

    2017 marks Qatar Airways' fourth win for Airline of the Year , an honor previously bestowed in 2011, 2012 and 2015. International Paris Air Show this week.

    Muslims question whether girl's killing was road rage

    Despite the police repeating again , "There is nothing at this point to indicate that this tragic case was a hate crime". Salaam said the community is struggling because Hassanen was beloved by so many and well-known for her kind spirit.
  • Baku Might Actually Be the Most Challenging Circuit on the F1 Calendar

    After about hald an hour, we started to see the supersofts reappear as the teams shifted their focus to qualifying runs. I locked up and I was still trying to make the corner and then I chose to play it safe and take the exit road.
    Republican health bill: Democrats pledge Senate standstill over secrecy

    Republican health bill: Democrats pledge Senate standstill over secrecy

    Democrats plan to speak until at least midnight to raise awareness of what Republicans would prefer to do in the dark of night. Senate Republicans have said they have no plans to publicly release the draft health care bill.
    Sean Spicer Is Reportedly Leaving The Briefing Room

    Sean Spicer Is Reportedly Leaving The Briefing Room

    Traditionally, the White House carves out separate roles and staffs for the press secretary and communications director. Spicer has become a household name for his combative press briefings, but they have become less frequent recently.
  • Letter to the Editor: Celebrating Ramadan

    The month of Ramazan is the ninth month and begins with a combination of a sighting of the new moon and astronomical calculation. The date for Eid al-Fitr, the first day of the month that follows Ramadan , is determined based on the sighting of the new moon.

    Indian PM Modi Visits Portugal on Trip to Meet with Trump

    During his meet with Trump, Modi will explain how the H-1B visa programme has benefited both countries. The senior White House official said any arms transfer would take into account the regional situation.
    Britain faces tough times over Brexit - Hammond

    Britain faces tough times over Brexit - Hammond

    A week of talks will take place once a month, with the next due to start on July 17. Still, Johnson called on people to look at the more distant future.