Sime Darby selling power unit
ERJ staff report (PR)
Sime Darby Berhad is to sell its Malaysian power business, Port Dickson Power Berhad (PDP), to Malakoff Corp. Berhad for RM300m (€67m) cash, Sime Darby announced 7 April.
The disposal is part of a group strategy to focus more on its main businesses of plantations, industrial equipment, motors, property and energy and utilities.
Sime Darby Plantation Sdn Bhd’s operations in Malaysia included 7,811 hectares of rubber plantation in Negeri Sembilan, Melaka and Johor in Peninsular Malaysia as of June last year.
Malakoff will acquire the remaining 75 percent of PDP it does not already own and 100% of the operation and maintenance company, Sime Darby Biofuels Sdn Bhd (SPV). The deal is expected to be completed by 30 June.
“The power purchase agreement for PDP expires in 2016. Since we are focusing on our five core businesses, the decision was made not to scale up our investments in the power industry. We will use the proceeds to strengthen our existing businesses,” said president and group chief executive Tan Sri Dato’ Seri Mohd Bakke Salleh.
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