Sime Darby to Exit Logistics Business With CNY1.92 Billion Sale of Weifang Port Companies
By Yi Wei Wong
Sime Darby Bhd. on Monday said it will exit the logistics business after the sale of its Weifang Port companies.
Its unit Sime Darby Overseas (HK) Ltd. will enter a share-sale agreement with SPG Bohaiwan Port Group to sell its Weifang Port companies for 1.92 billion yuan ($286.5 million), which will mark the company's exit from its noncore ports business.
In addition to the disposal, Sime Darby Overseas will receive CNY541 million as repayment of shareholder loans.
SPG Bohaiwan Port Group is part of Shandong Port Group Co., incorporated by the Shandong provincial government.
Proceeds from the sale of the companies will be used for investments in the company's core business in the industrial and motors sectors as well as for capital expenditure and repayment of short-term loans, the company said.
"We are pleased that a major part of our noncore asset rationalization plan has been achieved today with the sale of Weifang Port companies, the last of the businesses we own in the logistics division," Sime Darby Chief Executive Jeffri Salim Davidson said.
The share sale is expected to be completed by the fourth quarter of this year.
Sime Darby's shares were recently 0.5% lower at 2.15 ringgit after the announcement.
Write to Yi Wei Wong at firstname.lastname@example.org
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July 03, 2022 22:39 ET (02:39 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.