Tan Sri Mohd Bakke Salleh will be Sime Darby Plantation Bhd's executive deputy chairman and managing director
KUALA LUMPUR: Sime Darby Bhd
, via its unit Sime Darby Property Bhd, is disposing its entire interest in a property company to a unit of Permodalan Nasional Bhd for RM625mil.
The group told the stock exchange on Tuesday that Sime Darby Property had entered into a Share Sale Agreement for the disposal of its entire 40% equity interest in Seriemas Development Sdn Bhd (SDSB) comprising one million ordinary shares to PNB Development Sdn Bhd.
The group said the proposed disposal was in line with Sime Darby’s strategy to unlock value through monetisation and opportunistic divestments, while enabling it to reduce its borrowings via the proceeds.
The consideration was arrived at on a willing-buyer basis between the two parties after taking into consideration the market value of the land and investment properties held by SDSB of RM2.79bil.
It is also based on the valuation of Sime Darby Property’s 40% equity interest in SDSB as at March 31, 2017 of RM1.23bil based on the valuation report dated July 31, 2017 by KPMG, and the cash dividend of RM120mil received by Sime Darby Property from SDSB on June 30, 2017.
It represents a discount of 39.4% to the RNAV of SDSB.
Sime Darby’s original cost of investment in SDSB was RM449mil.
SDSB is a private limited company, in which Sime Darby holds an indirect 40% equity interest via Sime Darb Property while the remaining 60% is held by Permodalan Nasional Bhd via PNBD.
The group said the proposed disposal is not expected to have a material impact on the net assets per share and the consolidated gearing of Sime Darby for the financial year ending June 30, 2018.
It said PNB and ASB were the major shareholders deemed interested in the proposed disposal.
“PNB is a person connected with Amanah Saham Bumiputera (ASB) and is a substantial shareholder of Sime Darby holding 6.06% equity interest in Sime Darby as at the LPD.
“In addition, PNB holds 100% equity interest in PNBD.
“ASB is a major shareholder and also the largest shareholder of Sime Darby holding 41.14% equity interest in Sime Darby as at the LPD,” it said.
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