KUALA LUMPUR, Oct 7 — Sime Darby Bhd’s share price fell 1.15 per cent after the company proposed an asset disposal and acquisition with I&P Group Sdn Bhd.

As at 11.22am, the counter shed nine sen to RM7.70 with 377,100 shares changing hands.

The proposal comprises the disposal of freehold palm oil plantation land in Semenyih for RM428.8 million followed by an acquisition of freehold oil palm plantation land in Kluang and Batu Pahat for a combined amount of RM106.7 million.

Public Investment Bank in its research note said the transactions are a good opportunity to unlock potential value in both deals, which are a collective effort from the company and its major shareholder.

The research firm however maintained its ‘neutral’ call and target price (TP) of RM7.15.

Affin Hwang Capital Research, in a separate note, said in the completion of the company’s placement, more asset disposals and retention of profits should help to lower the debt to equity ratio.

"We now adjust the company’s TP to RM6.74 but maintain our ‘sell’ recommendation as we think the stock is overvalued,” it said. — Bernama