Sime Darby divesting Weifang Port companies for RM1.27bil

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KUALA LUMPUR: Sime Darby Bhd is exiting the non-core ports enterprise by divesting the whole fairness curiosity in its Weifang Port companies for 1.92 billion yuan (about RM1.27 billion).

Indirect wholly-owned subsidiary Sime Darby Overseas (HK) Ltd (SDOHK) has signed agreements to promote its stakes within the eight entities to SPG Bohaiwan Port Group Co Ltd, which is a part of state-owned enterprise Shandong Port Group Co.

The companies being divested present numerous port providers akin to loading and unloading of containers, dry bulk, break bulk, basic and liquid cargo in addition to storage providers for the ports’ clients.

In an announcement as we speak, Sime Darby stated moreover the disposal consideration, SDOHK will obtain an indicative sum of 541 million yuan (about RM357 million) as compensation of shareholder loans.

“The proceeds from Sime Darby’s sale of the Weifang Port companies will probably be utilised for future investments within the group’s core companies within the industrial and motors sectors, for capital expenditure and/or the compensation of short-term borrowings,” it stated.

Sime Darby has lately been progressively divesting belongings which have been recognized as non-core, as a part of the group’s efforts to streamline its portfolio and redeploy capital to help the expansion of its core companies of commercial and motors.

“These divestments embody the disposal of a water administration enterprise in Weifang, pursuits in Tesco Malaysia, Eastern & Oriental Bhd and three river ports in Jining,” it stated.

Its chief government officer Datuk Jeffri Salim Davidson stated China stays one in every of Sime Darby’s most necessary markets, contributing nearly 40 per cent of income for the group.

The industrial and motors companies there span throughout 120 areas and 14 provinces.

He stated the group appears ahead to channelling the proceeds acquired from the divestment into increasing and strengthening its place within the industrial and automotive sectors in China, in addition to persevering with to scope for alternatives in different markets.

“These previous couple of years have been a problem for the ports enterprise, and we’re grateful to the Shandong provincial authorities for finalising this settlement to allow us to unlock worth which we are able to now channel in the direction of rising our core companies,” Jeffri stated.

The share sale agreements are anticipated to be accomplished by the fourth quarter of 2022. – Bernama



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