China's Geely Automobile Holdings Ltd has acquired a 49.9 percent stake in national carmaker Proton Holdings Bhd from government-linked company DRB-Hicom Bhd.

Geely will also acquire a 51 percent in British sports car brand Group Lotus Plc, which is a fully-owned subsidiary of Proton Holdings. The balance would be acquired by little-known Etika Automobile Sdn Bhd.

Both parties are expected to sign a Definitive Agreement in July.

DRB-Hicom, a government-linked company controlled by tycoon Syed Mokhtar al-Bukhary, had been instructed to find a strategic partner for Proton Holdings as part of a condition for a RM1.5 billion softloan last year...