[Update] Proton sells stake to Geely for RM460m

: The total consideration for the disposal of a 49.9% stake in DRB-Hicom Bhd’s automotive arm Holdings Bhd to ’s Zhejiang Holding Group Co Ltd is RM460.3 million.

This was derived based on a cash injection of RM170.3 million by Geely and an implied value of RM290 million for the Boyue model platform.

Boyue, a SUV under the C segment, is one of Geely’s best-selling models launched in March 2016. Proton will rebadge, manufacture, sell, market and distribute Geely models in and Southeast Asia.

DRB-Hicom and Geely inked a definitive agreement for the partnership here today.

Under the partnership, DRB-Hicom group managing director Datuk Seri Syed Faisal Albar said Proton will become the manufacturing hub for Geely’s right-hand drive models.

Meanwhile, Geely chairman Li Shufu said the group’s priority is to turnaround both Proton and Lotus.

“The revival of Proton and Lotus will not be an easy task in a market with fierce competition. We’ll need to be fully prepared for the long and challenging road ahead,” he noted.

Source: The Sun Daily

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