COMMENT All Malaysian taxpayers must be shocked to read the article ‘Proton to raise capital’. Car maker issuing RM1.25 billion convertible preference shares to government, on page 3 of The Star on June 7, 2016.

Proton is a 100 percent unit of DRB-Hicom. When the redeemable convertible cumulative preference shares (RCCPS) is exercised into shares, the government will end up with a 79 percent stake in Proton and DRB-Hicom’s shareholdings will be diluted from 100 percent to about 21 percent.

DRB-Hicom yesterday said the government had agreed to subscribe to 1.25 billion RCCPS issued by Proton via Govco Holdings Bhd by way of RM1.25 billion cash payment.