KUALA LUMPUR (June 1): Sime Darby Plantation Bhd's indirect wholly-owned unit Ultra Oleum Pte Ltd has disposed of its entire 52% stake in Verdant Bioscience Pte Ltd (VBS) to SIPEF and Ackermans & van Haaren NV (AvH) for a total cash consideration of US$8.61 million or approximately RM37.4 million in cash.

Following the disposal, VBS ceases to be an indirect subsidiary company of Sime Darby Plantation, according to a filing with Bursa Malaysia today.

The disposal is not expected to have any material effect on the company's earnings, consolidated net assets and consolidated gearing for the financial year ending Dec 31, 2020.

VBS, incorporated in Singapore, is principally engaged in the research and development of life sciences and biotechnology in the areas of plantation science, plant breeding and seed production. VBS also provides management services to its 94%-owned Indonesian subsidiary PT Timbang Deli, which is involved in the cultivation of rubber and oil palm as well as seed production and processing.

SIPEF is a Belgian company and is an existing shareholder with a 38% equity interest in VBS, while AvH is an affiliated company to SIPEF.

Under disposal, SIPEF acquired 10% equity interest in VBS, bringing its stake to 48%, whereas AvH acquired the remaining 42% equity interest in VBS from Ultra.

At 2.40pm, Sime Darby Plantation's shares rose one sen or 0.2% to RM4.97, valuing it at RM34.22 billion.