KUALA LUMPUR (June 6): Sime Darby Property Bhd (KL:SIMEPROP) announced that it has proposed an internal reorganisation, which involves transferring selected assets, liabilities and business activities to its wholly-owned subsidiaries.

This is to streamline the company's structure into separate business streams, to better reflect its diverse operations. As such, Sime Darby Property will function solely as an investment holding company.

Under the proposal, all the township developments under Sime Darby Property which involve Bukit Jelutong, Denai Alam, Elmina Business Park, Bukit Subang, as well as Bandar Hamilton Nilai in Negeri Sembilan will be transferred to the respective units, namely Sime Darby Property (Bukit Jelutong) Sdn Bhd, Sime Darby Property (City of Elmina) Sdn Bhd, Sime Darby Property (Lagong) Sdn Bhd, Sime Darby Property (H&L) Sdn Bhd and MVV Holdings Sdn Bhd.

Meanwhile, its management services business will be transferred to Sime Darby Property (Management Services) Sdn Bhd, to focus on providing management services and support the property development business, investment and asset management business, leisure business as well as internal shared services.

Sime Darby Property told Bursa Malaysia that it has entered into reorganisation agreements with its subsidiaries by way of a members' scheme of arrangement under Sections 366 and 370 of the Companies Act, 2016.

Currently, Sime Darby Property is principally involved in the property development and management services businesses while acting as the listed investment holding company of the group.

At Thursday’s closing bell, shares of Sime Darby Property rose six sen or 4.84% to RM1.30, giving it a market value of RM8.84 billion.