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DRB-HICOM to discuss with Geely, PSA on Proton sale on Friday

KUALA LUMPUR: Proton Holdings Bhd’s parent DRB-HICOM Bhd plans to meet with China’s Zhejiang Geely Holding Group Co and France’s PSA Group this week to discuss proposals on Proton’s sale, Bloomberg is reporting.

The meeting will take place on Friday, the wire service quoted a person with knowledge of the situation as saying – although the individual asked not to be identified because the deliberations will be confidential.

Proton is seeking to sell as much as 51 per cent of its stake to a foreign buyer in order to keep factories open and develop new models.

DRB-HICOM declined to comment on the sale process, Bloomberg said.

Proton’s search for a buyer began last year.

With sales flagging, the government stepped in last April to make a RM1.5 billion ringgit loan to the national carmaker, which allowed it to avoid defaulting on obligations to suppliers.

The deal came with a significant catch: Proton must find a major new investor to put it on a more sustainable financial footing.

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