Friday, 30 June 2017

(The Edge Financial Daily) Sime Darby sells land to PNB for RM85.53m cash


KUALA LUMPUR: Sime Darby Bhd is selling New Lunderston Estate, a freehold tract measuring 297.51 acres (120.4ha), in Selangor for RM85.53 million cash.

In a filing with Bursa Malaysia yesterday, the conglomerate said its indirect wholly-owned subsidiary Sime Darby Builders Sdn Bhd has entered into a sale and purchase agreement (SPA) with PNB Development Sdn Bhd, a wholly-owned unit of Permodalan Nasional Bhd (PNB).

PNB is the controlling shareholder of Sime Darby, holding a 48.79% stake, according to its latest annual report.

Sime Darby said the net book value of the land in Sime Darby Builders was RM30.2 million as at June 30, 2016.

"The proposed disposal is in line with Sime Darby's strategy to unlock value through monetisation and opportunistic divestments," said the diversified group, which is in the midst of a demerger exercise.

The proceeds will be used to fund strategic development projects by Sime Darby Property Bhd within the next 12 to 24 months and for the payment of expenses in relation to the proposed disposal.

Barring any unforeseen circumstances, Sime Darby expects to complete the proposed disposal by year end.

Sime Darby said it expects to record a gain on disposal (after non-controlling interests) of RM62.4 million by the financial year ending June 30, 2018.

"This gain includes the estimated cost of disposal but excludes the impact of any contingent payment under the SPA," Sime Darby added.

Shares in Sime Darby closed four sen lower or 0.42% at RM9.57 yesterday, with 2.88 million shares changing hands with a market capitalisation of RM65.08 billion. Over the past 12 months, the stock has surged 28.28% from RM7.46.