Sime Darby to spin off plantation, property arms

PETALING JAYA: Sime Darby Bhd yesterday announced plans to spin off its plantation and property arms, leaving the current listed entity focused on its industrial, motors, logistics and healthcare divisions.
In a statement released in the evening, the group said its board will be evaluating the implementation measures and indicative timelines to give effect to the board’s decision, upon which it will make appropriate disclosures.
Sime Darby Bhd was created following the merger of Golden Hope Plantations Bhd, Kumpulan Guthrie Bhd and Kumpulan Sime Darby Bhd in 2007.
“Today, nine years after the merger and several strategic corporate exercises to position our businesses, we are ready to execute the original intention of our shareholders. Each division is now stronger, strategically structured and better equipped to stand alone and be listed as pure plays,” Sime Darby president and group CEO Tan Sri Mohd Bakke Salleh said in the statement.
Sime Darby Plantation, which had a landbank of 633,000ha, of which 540,000ha was planted at the point of merger, today boasts a landbank of 988,599ha, of which 603,254ha is planted. It is the world’s largest producer of certified sustainable palm oil, producing 2.6 million tonnes a year.
“Sime Darby Berhad will continue to seek out growth opportunities in home markets and beyond. We have already identified new synergistic businesses of high potential to capitalise on the changing needs of our customers and to fully realise the potential of our existing businesses. Shareholders will have much to look forward to,” Mohd Bakke said.
The transaction is not expected to result in any major disruption to the Sime Darby group’s existing operations.