KUALA LUMPUR, July 3 — Sime Darby Bhd was actively traded in the morning session today after entering into an agreement to divest its entire equity interest in China-based Weifang Sime Darby Water Management Co Ltd (WSDW) for about RM275 million in cash.
At 11.29am, Sime Darby shares fell 12 sen to RM2.31 with 5.25 million shares traded.
Public Investment Bank said in a research note today the disposal price was viewed as fair and in line with expectations.
“We view this disposal positively as it helps to realise the underlying value of non-core assets within the group as well as improve Sime Darby’s cash flow while strengthening its balance sheet,” it added.
WSDW, an indirect wholly-owned subsidiary of Sime Darby, owns and operates two water treatment plants in the Binhai Economic-Technological Development Area, adjacent to Weifang Port in Shandong Province, China, which have a capacity of 51.1 million cubic metres per annum
The investment bank is maintaining a “neutral” call on Sime Darby and a target price at RM2.40. — Bernama
