The government will inject the remaining RM250 million from the total RM1.5 billion soft loan by subscribing to 250 million new redeemable convertible cumulative preference shares (RCCPS), according to TheSun. Proton’s decision for the proposed issuance was made after a meeting between Proton representatives and the task force set up to monitor Proton’s business recovery plan, said parent company DRB-Hicom.
Proton issued a letter on August 16 to the finance ministry stating that the remainder of financial support from the government totalling RM250 million will be received through the proposed issuance of 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 finance ministry acknowledged receipt of the letter on August 17.
An earlier agreement between Proton and Govco was for the issuance of 1.25 billion similar shares to Govco at RM1 each, with the initial subscription completed on June 7. The initial subscription of RCCPS and the new RCCPS total RM1.5 billion, which represents the government’s support for Proton, the report says.
The proposed RCCPS issuance will be subject to the approval of DRB-Hicom shareholders, the report added. Maybank Investment Bank Bhd has been appointed principal adviser to DRB-Hicom for the issuance of shares. Earlier, it was reported by CIMB Equities Research via The Star that DRB-Hicom was looking to dispose of all of its stake in Proton, a claim that DRB-Hicom has since denied.
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Gulung tikar jer la..
Kami golongan majoriti pon X sapott P1 lama dah
Majority bashers, of course la
Kalau tak puji macam Madani dinamakan bashers, of couse lah
Pocket money pocket money! Who cares about low proton sales?
bankrupt proton begging for money again? where is the promised tech partner? where is the promised turnaround plan? they get the cash and pass to their own Bosses for their 6 figure salaries and pay their own crony suppliers to iriz and colossal failure perdana. Gov must take over and sell it off to offload the company and let it run under new owners nit DRB Missmanagers.
Tease here, tease there just to beg money lah. Ini budaya Proton. Aiyo, ini pun mau beritahu kah?
No test car = takata quality
Haha.. get RM1.5b loan still produce the Campro Engine & CVT bising Punch Powertrain gearbox? Oh My!.. Buy Toyota better! Good RV!
Better die in toyota death trap toyota rather than saved in p1!
Tahniah Proton, one step closer to close shop
Close bapak kau punya shop
low skirt to much..
“…Govco Holdings Bhd, which is 99.99% owned by Minister of Finance Inc. ”
The other 0.01% hold by who??…
Lousy and garbage company!!!
Lousy and garbage comment
Bye bye to Rm1.5b of taxpayers’ money.
It is loan
Tahniah. Jangan guna untuk bayar bonus ok? Syarikat rugi tak sepatutnya dapat bonus.
But but but.. the bonus is potong’s employee hak keistimewaan, dare you mentioned not giving it, even reduce it also CANNOT!!! lol
You better work hard rather than jelly here jelly there
stop supporting this bottomless money pit
use tax payers money to dump into proton. in return, proton sell to tax payers overpriced cars.
Do good and get good doesn’t happen here in malaysia.
But but but in Thai cars also expensive, your point?
Some CEO JEPUN have lunch with their employees in the factory cafeteria,sacrifice their own bonuses, some part of their salary in the hopes of reviving their companies profit and employees moral. Though it look like small but this gestures make all the differencss in the world. TO GIVE UP ONEs PRIVILGES FOR OTHERS AND STRIVING FOR DELIVERING EXCELENCE in all matters possible.
Here the proton exec management smile without a care in the world and look like running some fortune 500 company and earning billions or ringgit.But the whole country know proton is sinking. There is no plan to skip lunch ,burning the midnight oil ,nor signs of rolling up theirs sleeves to fix proton from un ending doom. Only plans for giv loans despite. Car taxes are high, not many people can afford foreign cars, gov staff and employees majority use proton.
Mati man…..proton hard working employees are at these guyss mercy.pity them
Would be MORE proud if they just close down, and country stop leeching AP…
Instead of “harassing” citizens to be patriotic, regardless the idiocy just to sustain some board directors to be rich.
By now, more people will learn, what Proton is make for!
MYR 1,500,000,000 mean, if one car can earn MYR 1000, you need to sell 1.5 Millions car to earn back those money to pay debt!!!
In this case, would you prefer to just taupau, run with those money? or continue work hard in next 20 years to pay this debt?
Thow our bloody money into sea again.
News about Proton Pinjam duit pun mau glamourize, izit????
You are sick
Enough is enough… close shop la
Mana Idris Jala and his turnaround plan?
1.5 bil depleting fast and yet we don’t see any
restructuring and chopping.
why don’t you allow the so called “many suitors” talk and agree on how P1 will move forward rather than to allow P1 decide their own direction and to their whim and fancies.
Management of P1 berlagak as if P1 is the market leader when in fact they should be conserving whatever cash that is available and be more prudent.
Bercukurlah !!!
Company in debt and negative cash flow still can issue (worthless) shares at par value for 1.5 bil loan, These GLC directors, mgmt and staff should put their own money where there mouth is and undertake personal liability/guarantees for the people’s tax money