Sime Darby cuts E&O stake sale price by 5.5% to RM323.3m

Sime Darby cuts E&O stake sale price by 5.5% to RM323.3m
-A +A

KUALA LUMPUR (Sept 27): Sime Darby Bhd is reducing the disposal price for its 10% stake in Eastern & Oriental Bhd (E&O) by 5.5% to RM323.3 million from RM342.2 million.

Sime Darby president and group chief executive Tan Sri Mohd Bakke Salleh said the new price better reflects the current outlook of the property sector.

"We are mindful of the challenging business environment where a slowing global economy and the rising cost of living have affected consumer sentiment," he said in a stock exchange filing today.

"However, both parties are still keen to complete the transaction, leading to a mutually agreed outcome," he added.

On June 3, the conglomerate announced that it was disposing of the 10% stake in E&O — comprising 125.98 million shares at RM2.60 each and 48.8 million convertible warrants at 30 sen each — to Paramount Spring Sdn Bhd.

In its filing today, Sime Darby said it is lowering the disposal price of the shares to RM2.45 each, but the disposal price of the convertible warrants stays at 30 sen each.

Paramount Spring is a private investment vehicle of E&O group managing director Datuk Seri Terry Tham Ka Hon. It was reported then that the disposal would result in Tham upping his stake in E&O from 11% to 21%.

Sime Darby shares were down 11 sen (1.4%) today at RM7.67, for a market capitalisation of RM48.5 billion.