Sime Darby exits water management biz

PETALING JAYA: Sime Darby Bhd is exiting the water management business with the disposal of its entire 100% stake in China's Weifang Sime Darby Water Management Co Ltd for US$68.01 million (RM275 million).
The group told Bursa Malaysia that Sime Darby Overseas (HK) Ltd, an indirect wholly owned subsidiary of Sime Darby incorporated in Hong Kong, had on June 29 entered into a share purchase agreement with local state-owned Shandong Water Environmental Protection Group Co Ltd for the divestment.
Sime Darby said the divestment is part of the group's strategy to rebalance its portfolio and focus on its core businesses.
"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."
Sime Darby is expected to record a one-off estimated net gain of about RM65 million from the disposal.
Weifang Water, which is located in the Shandong province, operates two water treatment plants with a total capacity of 140,000m3 a day and has a 220km pipeline network covering two-thirds of the Binhai Economic Development Area.
 
At the noon break, Sime Darby's share price was unchanged at RM2.45 on 441,900 shares done.