KUALA LUMPUR: Sime Darby Bhd
is selling its China-based water management business, Weifang Sime Darby Water Management Co. Ltd to Shandong Water Environment Protection Group Co. Ltd for US$68mil or RM275mil.
Sime Darby said on Monday the divestment was part of its strategy to rebalance its portfolio and focus on its core businesses of global trading and logistics.
“The divestment is expected to be completed in the second half of 2018 and the proceeds will be utilised to pare down borrowings and/or to fund the group’s operations,” it said.
Weifang Water is about two kilometres north of Yangzi Town in the Shandong province. It operates two water treatment plants with a total capacity of 140,000 cubic metres a day and has a 220km pipeline network covering two-thirds of the Binhai Economic Development Area.
Shandong Water Environment is a local state-owned company which is also involved in the water management business.
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