KUALA LUMPUR (Nov 8): Sime Darby Bhd (SDB) has completed the sale of the Weifang Port companies in China for about RM1.27 billion, marking its full exit from the non-core ports business.
In a bourse filing on Tuesday (Nov 8), SDB said the disposals were completed on Monday.
“Following the completion of the proposed disposals, the Weifang Port companies have ceased to be subsidiaries, joint ventures and associates of Sime Darby,” it said.
SDB on July 4 said its indirect wholly-owned subsidiary Sime Darby Overseas (HK) Ltd (SDOHK) had entered into share sale agreements with SPG Bohaiwan Port Group Co Ltd to divest the Weifang Port companies.
In addition to the disposal consideration, SDOHK will receive an indicative sum of approximately RM357 million as repayment of shareholder loans.
SPG Bohaiwan Port Group is part of Shandong Port Group Co, which was incorporated by the Shandong provincial government to consolidate port assets in the province.
SDB said the proceeds from the sale of the Weifang Port companies will be utilised for future investments in the group’s core industrial and motors businesses, for capital expenditure, and/or to repay short-term borrowings. The share sale agreements are expected to be completed by the fourth quarter of 2022.
At the midday break on Tuesday, SDB had shed 0.9% or two sen to RM2.20 a share, with 1.08 million units traded.