KUALA LUMPUR: DRB-HICOM Bhd’s 50.1 per cent subsidiary, Proton Holdings Bhd, has terminated its equity joint venture contract with Goldstar Heavy Industrial Co Ltd.
Lotus Group International Ltd had also issued a termination notice to Goldstar.
In a filing to Bursa Malaysia, DRB-HICOM said the economic interests of Proton and Lotus in the joint venture company — Goldstar Lotus Automobile Co. Ltd (GLAC) — were transferred to DRB-HICOM on September 29, 2017.
The current amount of issued and paid-up share capital of GLAC is RMB180 million (RM110.35 million) and the registered shareholders are Proton (40 per cent), Lotus (10 per cent) and Goldstar (50 per cent).
It said GLAC has not yet commenced operations as it has not yet obtained the required manufacturing licence. Failure to obtain the said licence within the agreed timeframe entitles either party to terminate the equity joint venture contract.
“Arising from the termination, the parties will consider and agree on the next course of action.”
GLAC was incorporated on September 25, 2015 as a limited liability company in China. The initial contract was formed to produce and sell Lotus branded passenger cars, engines, parts and components, and accessories as well as to provide aftersales services in China.