[ad_1]
- Details
- Published […] on Tuesday, 03 July 2018 15:12
KUALA LUMPUR: The Sime Darby Bhd sale price for Weifang Sime Darby Water Management Co is fair, public Investment Bank Bhd said.
PublicInvest stated that the divestiture can help further unlock the value of non-core assets in the Sime Darby Group.
The group, through the unit Sime Darby Overseas (HK) Ltd., had entered into a stock purchase agreement with Shandong Water Environmental Protection Group Ltd. (Shuifa) to sell the entire of its 100% stake in WSDW for US $ 68 million or about RM 275 million
"We consider the sale price at 1.3 times the book value of WSDW."
Nevertheless, PublicInvest n & # 39; has not made any adjustments to its earnings guidance as the divestment would have a minimal impact on Sime Darby's fiscal year ending earnings in 2019.
The company has maintained its "neutral" appeal on Sime Darby Despite a strong backlog in its industrial sector due to improved mining and construction activities in Australia and China, PublicInvest remained cautious on Sime Darby's ongoing engine segment
Sime Darby should receive a gain net of RM65 million under the proposed divestment, which is expected to be completed in the second half of the year.
– NST [19659013]
[ad_2]
Source link
