MARKET DEVELOPMENT
Permodalan Nasional Eyes Listings for Sime Darby Units
Permodalan Nasional Eyes Listings for Sime Darby Units
15/11/2016 (The Edge) - Permodalan Nasional Bhd (PNB) is looking at breaking up subsidiary Sime Darby Bhd to unlock the latter's value, The Edge Malaysia business and investment weekly (Edge Weekly) reported in its latest November 14 - 20 issue.
Malaysian Government-owned investment arm PNB owns more than 50% of Sime Darby. Sime Darby's diverse businesses include oil palm plantation, property development and car dealership.
Edge Weekly, quoting sources, reported that PNB chairman Tan Sri Abdul Wahid Omar and CEO Datuk Abdul Rahman Ahmad had key roles in the plan. It was reported that the proposal might involve individual listings for Sime Darby's business divisions.
It was reported that the plan had the support of Sime Darby's management. “It’s being done at a high level of PNB and Sime Darby. To make things clear, the plan is not being opposed by Sime Darby’s management; they are working on it together,” a source told The Edge.
Plans to break up Sime Darby has been in the news. Edge Weekly reported that Sime Darby president and group CEO Tan Sri Mohd Bakke Salleh "had openly talked" about the corporate proposal without providing specific deadlines.
"But the active desire and participation of its majority shareholder now may inject fresh vigour into the break-up plan," Edge Weekly said.
On Friday (Nov 11), Sime Darby shares fell four sen or 0.5% to close at RM8.20 for a market value of RM54.48 billion. The stock saw some 11 million shares traded.
Malaysian Government-owned investment arm PNB owns more than 50% of Sime Darby. Sime Darby's diverse businesses include oil palm plantation, property development and car dealership.
Edge Weekly, quoting sources, reported that PNB chairman Tan Sri Abdul Wahid Omar and CEO Datuk Abdul Rahman Ahmad had key roles in the plan. It was reported that the proposal might involve individual listings for Sime Darby's business divisions.
It was reported that the plan had the support of Sime Darby's management. “It’s being done at a high level of PNB and Sime Darby. To make things clear, the plan is not being opposed by Sime Darby’s management; they are working on it together,” a source told The Edge.
Plans to break up Sime Darby has been in the news. Edge Weekly reported that Sime Darby president and group CEO Tan Sri Mohd Bakke Salleh "had openly talked" about the corporate proposal without providing specific deadlines.
"But the active desire and participation of its majority shareholder now may inject fresh vigour into the break-up plan," Edge Weekly said.
On Friday (Nov 11), Sime Darby shares fell four sen or 0.5% to close at RM8.20 for a market value of RM54.48 billion. The stock saw some 11 million shares traded.