Geely Automobile announced on the Hong Kong Stock Exchange on January 20 that after today’s trading hours, Linkstate, a direct wholly-owned subsidiary of the company, entered into a Proton agreement with Geely International Hong Kong. In other words, the Proton brand and its brands are formally included in the management of the group company.
According to the announcement, Geely International Hong Kong has conditionally agreed to sell and Linkstate has conditionally agreed to purchase Proton sales shares and sales loans at a consideration of RMB 1.063 billion and US$56.39 million, or approximately RMB 382 million.
On the same day, Linkstate and Geely International Hong Kong also entered into the DHG Agreement, pursuant to which Geely International Hong Kong conditionally agreed to sell and Linkstate conditionally agreed to purchase the DHG Sale Shares for a nominal consideration of US$1.00.
Upon completion of the acquisitions of the Proton Sale Shares and the DHG Sale Shares, Geely Automobile will hold 49.9% of the issued and paid-up ordinary share capital of each of Proton and DHG and will account for their financial results using the equity method.
According to industry insiders, the acquisition of Proton provides a valuable opportunity for the group to enter Southeast Asia. At the same time, relying on Proton’s resources and experience, it will further strengthen its business development in Southeast Asia, and continue to cooperate with Proton to develop electric vehicle products under the Proton brand. At present, Proton’s market share in the southeast exceeds 20%!
Proton is a limited company incorporated in Malaysia in 1983. Proton’s principal activities include the production and sale of its own brand of motor vehicles in Southeast Asia. As at the date of this announcement, Proton is owned as to 50.1% by DRBH and 49.9% by Geely International HK.
