KUALA LUMPUR, July 2 — Sime Darby Bhd has proposed to divest its China-based water management business, Weifang Sime Darby Water Management Co Ltd (Weifang Water), for US$68 million or approximately RM275 million.
The global trading and logistics player in a statement here said Weifang Water would be sold to Shandong Water Environment Protection Group Co Ltd, a local state-owned company which is also involved in the water management business.
Located two kilometres north of Yangzi town in Shandong province, Weifang Water 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.
“The divestment is part of Sime Darby’s strategy to rebalance its portfolio and focus on its core businesses,” said the group.
It added the divestment is expected to be completed in the second half of 2018 with the proceeds to be utilised to pare down borrowings and/or to fund the group’s operations. — Bernama
