DRB-Hicom Vows to Remain Proton’s “Substantial” Owner

Malaysia conglomerate DRB-Hicom Bhd says it will remain a “substantial shareholder” in Proton Holdings Bhd as it looks for an alliance partner to reverse the carmaker’s losses.

Reports earlier this month suggested DRB-Hicom was prepared to sell a majority stake in Proton. But the company tells The Star only that it will consider “the potential of giving an equity stake,” depending on what a would-be partner agrees to contribute.

DRB-Hicom says it is considering overtures from five unidentified companies and will hold further discussions to clarify their offers before deciding the size of any equity sale. Media reports suggest the likely candidates include PSA, Renault, Skoda and Suzuki. The company aims to reach a deal in the first quarter of 2017.

The Malaysian government pumped aid worth 1.3 billion ringgit ($303 million) into Proton earlier this year and ordered the company to find an investment partner by next summer.