NST Business
KUALA LUMPUR: Sime Darby Bhd’s wholly-owned subsidiary, Sime Darby Property Bhd (SDP), is disposing its entire 40 per cent stake in Seriemas Development Sdn Bhd (SDSB) to PNB Development Sdn Bhd for RM625 million.
In a filing to Bursa Malaysia, Sime Darby said the disposal is in line with its strategy to unlock value through monetisation and opportunistic divestments, while reducing its borrowings via the proceeds from the proposed disposal.
It said the original cost of investment in SDSB is RM449 million.
Sime Darby said it intends to utilise the proceeds from the disposal consideration, of RM615 million, for general corporate purposes and working capital including repayment of borrowings.
SDSB is 60 per cent-owned by Permodalan Nasional Bhd.
It said the market value of the land and investment properties held by SDSB stands at RM2.79 billion as ascribed by CH Williams Talhar & Wong Sdn Bhd as set out in its valuation certificates dated July 5, 2017.
The valuation excludes a parcel of land located in Bangi, of which the SDSB plans to dispose to SP Setia Bhd for RM447.6 million via an agreement signed in April.