Govt to pump in remaining RM250m financial support into Proton

PETALING JAYA: The government will pump in the remaining RM250 million promised to DRB-Hicom Bhd's wholly-owned subsidiary Proton Holdings Bhd by subscribing to 250 million new redeemable convertible cumulative preference shares (RCCPS).
In a filing with Bursa Malaysia yesterday, DRB-Hicom said Proton's decision for the proposed issuance was made after a meeting between the task force set up to monitor Proton's business recovery plan and Proton representatives held on Aug 10.
The task force, led by the Performance Management and Delivery Unit (Pemandu), comprises members appointed by the government.
Proton on Aug 16 issued a letter to the Finance Ministry conveying its decision that the balance of the financial support from the government totalling RM250 million will be via the proposed issuance of up to 250 million new Proton RCCPS at an issue price of RM1 each to Govco Holdings Bhd, which is 99.99% owned by Minister of Finance Inc. The ministry acknowledged receipt of the letter on Aug 17.
Earlier, on June 6, Proton and Govco entered into a conditional subscription agreement for the issuance of up to 1.25 billion RCCPS at an issue price of RM1 each to Govco. The initial subscription RCCPS was completed on June 7.
The initial subscription RCCPS and the new RCCPS represent the financial support from the government to Proton, totalling RM1.5 billion. The proposed RCCPS issuance will be subject to the approval of DRB-Hicom shareholders.
Maybank Investment Bank Bhd has been appointed principal adviser to DRB-Hicom for the issuance.