The announcement by DRB-Hicom earlier today that it had reached an agreement with Zhejiang Geely for the Chinese carmaker to acquire a 49.9% equity stake in Proton also saw big news about Lotus.

The conglomerate announced that it was selling off Lotus Cars in its entirety for a sum of 100 million pounds sterling (RM556 million), with the sale to be accomplished in two blocks.

As reported earlier, Geely will acquire a majority stake of 51% in Lotus from Proton, a move it was said to have been eyeing for a while. The remaining 49% stake will be sold to Etika Automotive, a subsidiary of Etika Strategy, which is owned by Tan Sri Syed Mokhtar Al-Bukhary, who happens to control DRB-Hicom.

With this, DRB-Hicom group MD Datuk Sri Syed Faisal Albar said the conglomerate will be exiting and no longer be involved in the sports car business.

He explained that the decision to sell off the British sports car maker was due to the latter’s large capital expenditure obligations (in sterling pounds). With Lotus suffering continuing losses, the move will enable DRB-Hicom to cut its losses It added that the proceeds of the Lotus sale will be monetised for future investment.

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Tags: Proton-Geely FSP