By Jason Ng
KUALA LUMPUR (Jun 23) -- DRB-Hicom, a Malaysian defense-to-banking conglomerate, Friday said it will sell a 49.9% stake valued at 460.3 million ringgit ($107.3 million) in its financially stressed carmaking unit Proton Holdings to China's Geely Zhejiang.
Last month, DRB-Hicom signed a stake-sale pact with Geely that also included the sale of Proton's sports car unit Lotus, as part of a government-backed restructuring programme to help Malaysia's ailing national carmaker. It hadn't disclosed the deal amount.
The Lotus sale price will remain at 100 million British pounds, DRB-Hicom's Group Managing Director Syed Faisal Albar said at a news conference.
Proton will assemble Volvo branded cars if there're excess capacity at its plant, he said.
Geely owns Volvo cars.
Under the Proton stake sale deal, DRB-Hicom will pay off Proton's syndicated loan amounting 530 million ringgit and build a test track for 180 million ringgit, Syed said.
- By Jason Ng; email@example.com; +603-20267363
- Edited By Abhrajit Gangopadhyay
- Send Feedback to firstname.lastname@example.org
- Copyright (c) 2017 Nikkei NewsRise Asia Pte Ltd.