Monday, July 7, 2025
  • PRESS RELEASE
  • ADVERTISE
  • CONTACT
Happy With Car
No Result
View All Result
  • HOME
  • AUTO NEWS
  • AUTOMATIIVE REVIEWS
  • NEW CARS
  • CAR MARKET
  • CAR BRANDS
  • TECHNOLOGY
  • INSURANCE
  • FINANCE
  • VIDEOS
Happy With Car
No Result
View All Result
Geely transfers Proton shares to another subsidiary to reduce ‘connected transactions’ – what is this about?

Geely transfers Proton shares to another subsidiary to reduce ‘connected transactions’ – what is this about?

by admin
June 5, 2023
in Auto News
0 0
0
Share on FacebookShare on Twitter


Geely transfers Proton shares to another subsidiary to reduce ‘connected transactions’ – what is this about?

Final month, there was an announcement by Bursa Malaysia-listed DRB-Hicom, which stated that Zhejiang Geely Holding (ZGH), by way of wholly-owned subsidiary Geely Worldwide (Hong Kong) Ltd (GIHK), has transferred its total fairness curiosity in Proton to a different subsidiary throughout the wider Geely group.

In a submitting with the native bourse, the conglomerate stated the switch comprised 547.2 million odd shares, representing 49.9% fairness curiosity in Proton (the remainder is owned by DRB) and the recepient is an organization known as Linkstate Abroad Ltd.

“The switch of Proton shares from GIHK to Linkstate is not going to have any impact on the web property, earnings, gearing, share capital, shareholding construction and substantial shareholders’ shareholdings of the DRB-Hicom group for the monetary 12 months ending Dec 31, 2023,” the corporate stated, branding the transfer as “inside restructuring in Geely group”.

Geely transfers Proton shares to another subsidiary to reduce ‘connected transactions’ – what is this about?

Proton shareholding in 2023 – click on to enlarge

From Geely’s left hand to its proper hand, so there’s nothing to have a look at? Requested by readers, we did some checking and listed below are the findings.

First, the events concerned. ZGH is the holding firm that’s absolutely managed by founder Li Shufu and his proxy, and ZGH is the only shareholder of funding holding firm GIHK, which earlier than this, held the 49.9% stake in Proton. Geely values the fairness at RMB 1,063 million (RM689.3 million).

The Proton stake has been transferred to Linkstate, a direct wholly-owned subsidiary of Geely Car Holdings Restricted, a Hong Kong-listed firm we’ll name Geely Auto. Simply consider Geely Auto because the Geely model, the carmaker, and ZGH because the holding firm belonging to Li, who controls about 40% of Geely Auto. In keeping with Geely Auto’s HKSE submitting dated January 20, the position of Proton beneath its umbrella streamlines issues, financially.

“The Group at present sells car components and parts and supply R&D and expertise licensing companies to the Geely Holding Group in relation to the manufacture of Proton-branded automobiles. After completion of the Proton Acquisition, the Group will instantly promote car components and parts and supply R&D and expertise licensing companies to the Proton Group, which can then stop to be a linked individual of the Firm,” Geely Auto stated.

Geely transfers Proton shares to another subsidiary to reduce ‘connected transactions’ – what is this about?

The Zhejiang Geely Holding Group and its corporations – click on to enlarge

“The above association will scale back the variety of persevering with linked transactions between the Group and the Geely Holding Group and thus scale back the Group’s reliance on the Geely Holding Group,” it added. Geely Auto may even “proceed to assist the enterprise improvement of Proton and can think about to supply additional monetary help pro-rata to its curiosity in Proton”.

Now, we’ve all the time seen Proton as Geely’s arm in Malaysia and ASEAN, and that’s as a result of Proton – beneath Geely’s management – has all the time said its goal to be primary in Malaysia and a high three participant in ASEAN. And so, we’re assuming Geely merchandise will enter our nation and regional markets with Proton badges, similar to how it’s with Brunei.

However we’re now listening to that Geely is in talks to instantly enter the Thailand market. Whereas the carmaker flatly rejected the Reuters report, it’s identified that Thailand’s Board of Funding held talks with 5 main Chinese language EV makers together with Geely throughout a roadshow to China in April.

Geely transfers Proton shares to another subsidiary to reduce ‘connected transactions’ – what is this about?

Additionally, again in November 2021, we reported that Lynk & Co – a JV between Geely Auto and Volvo – will enter Malaysia. Within the “Sensible Geely 2025” strategic roadmap, the group stated that “Lynk & Co will develop its international presence by coming into Russia, Malaysia, Australia, and New Zealand amongst others,” with out giving a timeline. Premium EV model Zeekr may additionally be on the best way right here.

So, in addition to extra easy accounting, may the Proton share switch train from ZGH/GIHK to Linkstate/Geely Auto additionally take away the potential for battle of curiosity ought to Lynk & Co enter our market and rival Proton, so to talk? In authorized phrases, after all, as each left and proper fingers belong to ZGH and finally Li Shufu. Mere hypothesis at this level, after all.

How may Geely do that to Proton, some would possibly ask. Wasn’t Proton speculated to be the Geely empire’s sole enforcer within the area? We are going to by no means actually know what Geely’s unique plans for Proton have been, or whether or not the issue of the duty (an early declaration to be primary in Malaysia and high three in ASEAN sounded overambitious then, nonetheless is now) has altered the grand scheme for the formidable Chinese language firm.

Anyway, Proton has extra capability in its automobile and engine crops in Tanjung Malim and contract meeting for the broader Geely group is usually a supply of revenue.





Source link

Tags: connectedGeelyProtonreducesharessubsidiarytransactionstransfers

Related Posts

SMMT: Van market down every month in first half of 2025
Auto News

SMMT: Van market down every month in first half of 2025

July 7, 2025
Andy Palmer: India’s Auto Industry at a Crossroads
Auto News

Andy Palmer: India’s Auto Industry at a Crossroads

July 4, 2025
Ferrari to Manual Gearbox Fans: Just Buy Used
Auto News

Ferrari to Manual Gearbox Fans: Just Buy Used

July 5, 2025
Slovakian production confirmed for Polestar 7
Auto News

Slovakian production confirmed for Polestar 7

July 4, 2025
Nissan Z Quietly Outsells the Supra Three to One in 2025 Sales Surge : Automotive Addicts
Auto News

Nissan Z Quietly Outsells the Supra Three to One in 2025 Sales Surge : Automotive Addicts

July 6, 2025
2025 Hyundai Tucson facelift launched in Malaysia – 2.0L NA, 1.6T, 1.6T hybrid, RM143,888 to RM197,888
Auto News

2025 Hyundai Tucson facelift launched in Malaysia – 2.0L NA, 1.6T, 1.6T hybrid, RM143,888 to RM197,888

July 2, 2025
Load More
Next Post
Renault Group dissects its decarbonization strategy at ChangeNOW

Renault Group dissects its decarbonization strategy at ChangeNOW

How Porsche’s New Mobile Museum Celebrates Its 75th Anniversary

How Porsche's New Mobile Museum Celebrates Its 75th Anniversary

Categories

  • Auto News (3,398)
  • Automative Reviews (1,921)
  • Car Brands (2,047)
  • Insurance (3,417)
  • Market (1,599)
  • New Cars (2,142)
  • Technology (2,012)
  • Videos (2,124)
Happy With Car

Find the latest automotive news. Read car news from the auto industry including auto shows, latest vehicles, future cars and more.

Categories

  • Auto News
  • Automative Reviews
  • Car Brands
  • Insurance
  • Market
  • New Cars
  • Technology
  • Videos

Recent News

  • Mahindra says ute, one new SUV per year coming
  • 2025 New Mahindra Scorpio Classic S Base🔥नई ऑन रोड किमत के साथ
  • A Few Unlucky Ford F-150 Lightning Owners Could Face Braking Problems
  • Home
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact

Copyright © 2020 Happy With Car

No Result
View All Result
  • HOME
  • AUTO NEWS
  • AUTOMATIIVE REVIEWS
  • NEW CARS
  • CAR MARKET
  • CAR BRANDS
  • TECHNOLOGY
  • INSURANCE
  • FINANCE
  • VIDEOS

Copyright © 2020 Happy With Car

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In