Sime Darby to sell entire 40% stake in property firm to PNB for RM625 million

PETALING JAYA: Sime Darby Bhd is disposing of its entire 40% stake in property firm Seriemas Development Sdn Bhd (SDSB) to Permodalan Nasional Bhd (PNB) for RM625 million.

The group told Bursa Malaysia that its wholly owned subsidiary Sime Darby Property Bhd had entered into a share sale agreement with PNB's wholly owned subsidiary PNB Development Sdn Bhd for the disposal. Currently PNB holds the remaining 60% stake in SDSB.

Sime Darby said the disposal is in line with its strategy to unlock value through monetisation and opportunistic divestment, while enabling the group to reduce its borrowings via the proceeds from the proposed disposal.

The group is expected to realise a gain on disposal of about RM305 million, against its original cost of investment of RM449 million. The consolidated earnings per share of Sime Darby is expected to increase by about 4.48 sen upon completion of the proposed disposal.

SDSB registered a net profit of RM40.2 million for the financial year ended December 31, 2016 with RM1.4 billion in net assets.

At 12.30pm, Sime Darby shares rose 4 sen to RM9.49 on some 2.05 million shares done, giving it a market capitalisation of RM64.54 billion.