KUALA LUMPUR (March 8): DRB-Hicom Bhd said an arbitration tribunal has decided in favour of its subsidiary Proton Holdings Bhd and Lotus Group International Ltd (LGIL) in relation to the 860.61 million yuan (RM570 million) civil complaint filed by Goldstar Heavy Industrial Co Ltd.

Goldstar's claim pertained to an equity joint venture contract (EJVC) entered into by Proton, LGIL and Goldstar in April 2015 to form a joint venture company — Goldstar Lotus Automobile Co Ltd (GLAC) — to produce and sell Lotus branded cars and spare parts as well as provide aftersales services in China.

In a bourse filing on Tuesday (March 8), DRB-Hicom said the Hong Kong International Arbitration Centre's Tribunal of the Arbitration Proceedings has declared that the EJVC was validly terminated on Feb 22, 2018.

The tribunal also declared that Proton and LGIL may, under the EJVC, call upon Goldstar to cause its appointed directors of GLAC to approve the termination of the contract and dissolution of GLAC at a duly called board meeting.

The legal proceedings stemmed from the termination of the EJVC on Jan 22, 2018. The contract was terminated owing to GLAC's failure to obtain the required manufacturing licence by the extended Dec 31, 2017 deadline.

Proton and LGIL held 40% and 10% stakes respectively in GLAC, while Goldstar controlled the remaining 50%.

Shares in DRB-Hicom closed two sen or 1.44% higher at RM1.41, giving the group a market capitalisation of RM2.73 billion.