Sime Darby to divest 70pc stake in Jining Port companies

Screengrab of Sime Darby Bhd's website
Screengrab of Sime Darby Bhd's website

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KUALA LUMPUR, Dec 1 — Sime Darby Bhd's indirect wholly-owned subsidiary incorporated in Hong Kong, Sime Darby Overseas (HK) Ltd (SDOHK), has entered into equity transfer agreements (Phase 1 ETAs) with Jining Port and Shipping Development Group Co Ltd (JPSDG) to divest its entire 70 per cent stake in Jining Port Companies for 293.9 million renminbi (RM181.6 million).

Jining Port Companies comprise Jining Sime Darby Port Co Ltd, Jining Sime Darby Longgong Port Co Ltd and Jining Sime Darby Taiping Port Co Ltd.

In a filing with Bursa Malaysia today, Sime Darby said the aggregate consideration of RM181.6 million was derived based on the projected cash flows of the Jining Port Companies.

The Phase 1 ETAs are expected to be completed within one month from date of signing on Nov 30, 2020.

Sime Darby said the subsidiary had also signed a shareholders' agreement to subscribe for a 49 per cent equity interest in Jining Port and Shipping Port Services Co Ltd (JPSPS) for 199.9 million renminbi (RM123.5 million).

SDOHK and JPSDG will incorporate a new vehicle, JPSPS, to develop the local port economy, it said.

Besides that, SDOHK has also entered into ETAs with JPSDG to divest its entire 49 per cent equity interest in JPSPS for 213.7 million renminbi (RM132 million) over three years.

All proposals are not expected to have a material effect on the earnings per share, net assets per share and gearing of Sime Darby for the financial year ending June 30, 2021. — Bernama

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