KUALA LUMPUR (Dec 21): Sime Darby Bhd is buying a 65% stake in a Chinese motor vehicle retailer to further strengthen its footprint in Yunnan province.
It is paying 19.50 million yuan (RM11.83 million) for the stake in Qujing Bow Kai Motors Sales & Services Co Ltd (QJBK), Sime Darby said in a filling with Bursa Malaysia.
The group said its indirect wholly-owned subsidiary, Chengdu Bow Yue Vehicle Company Ltd, is acquiring the stake from Yunnan Kai Cheng Economic and Trading Co Ltd (YNKC) and Heshan Shunwei Property Management Co Ltd.
YNKC will still retain a 35% equity interest in QJBK, the filing said.
The deal is expected to be completed at the end of January 2019 or latest at the end of June 2019, the group added.
Sime Darby’s share price rose nine sen or 3.98% to close at RM2.35, giving it a market capitalisation of RM15.98 billion.