Proton close to be delisted from Bursa Malaysia image

DRB-Hicom Bhd is set to privatise and delist Proton Holdings Bhd from Bursa Malaysia, after securing over 90 percent equity interest in the national carmaker through its takeover offer.

Update: – As of 5pm yesterday, DRB-Hicom owns 90.02% stake in Proton as announced by the company’s advisers Maybank Investment Bank Bhd and Hong Leong Investment Bank Bhd.

The privatisation of Proton will create the country’s single largest automotive group, with multiple brand representation, to rival the current strong alliance between second national carmaker Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and Toyota Malaysia.

But this will likely be a blow to its current network of parts vendors as the company also extensively manufactures automotive parts.

“The level of integration will definitely be much higher than say DRB-Hicom having a controlling stake in a listed Proton, which would still be answerable to minority shareholders,” the newspaper quoted an analyst as saying.