This article first appeared in The Edge Financial Daily on July 3, 2018
KUALA LUMPUR: Sime Darby Bhd has proposed a divestment of its China-based water management business, Weifang Sime Darby Water Management Co Ltd (Weifang Water) for US$68 million or 450 million yuan (RM274.72 million).
“The divestment is part of Sime Darby Bhd’s strategy to rebalance its portfolio and focus on its core businesses,” said Sime Darby in a statement yesterday.
“The divestment is expected to be completed in the second half of 2018 and the proceeds will be utilised to pare down borrowings and/or to fund the group’s operations,” it added.
Weifang Water, stationed 2km north of Yangzi Town in the Shandong province, operates two water treatment plants with a total capacity of 140,000m3 a day.
It also has a 220km pipeline network covering two-thirds of the Binhai Economic Development Area.
Weifang Water will be sold to Shandong Water Environment Protection Co Ltd, a Chinese state-owned company also involved in the water management business.