DRB-Hicom, the apparent winner of the tussle for Khazanah Nasional Bhd’s 42.74% stake in national carmaker Proton, has officially announced a proposal to acquire the stake to Bursa Malaysia, as any listed company is required to do.

They will pay the Government’s investment holding arm RM1,291,040,812, or RM5.50 per share in cash. DRB-Hicom also proposes to do conduct a mandatory general offer (MGO) to buy up the shares it doesn’t already own after the deal with Khazanah, as per listing rules.

Minority shareholders will be offered the same price – RM5.50 per share – as the conglomerate is offering Khazanah. Last Friday, before trading of Proton shares were suspended, the counter closed at RM5.18.

The deal is almost 100% done, but for two caveats: the approval of the shareholders of DRB-Hicom at an extraordinary general meeting to be convened AND the approval of or notification to the Ministry of International Trade and Industry (MITI) on the change of shareholder of Proton.

In the proposal, DRB-Hicom also stated that it will not carry out any dealing with any Proton shares within two years from the transaction date, including the disposal of the assets of Proton, or any of its group companies. The company also says that during the period of one year from the completion date, it will not propose or vote in favour of any plans which may result in the dismissal, discharge, retrenchment or lay-off of the employees of Proton and/or its subsidiaries.

DRB-Hicom had issued an irrevocable standby letter of credit in the amount of RM38,731,224.35 representing 3% to the vendor, which is of course Khazanah. Mere formality now, before the official announcement.