Friday 29 Mar 2024
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KUALA LUMPUR (April 18): Sime Darby Bhd has invited eligible holders of two tranches of its outstanding sukuk amounting to US$800 million to either tender for cash repurchase or novate the debt to Sime Darby Plantation Sdn Bhd.

In a filing with Bursa Malaysia today, Sime Darby said the cash repurchase involves a multi-currency US$1.5 billion sukuk programme issued by Sime Darby Global Bhd on Jan 29, 2013, of which the outstanding sukuk is in two tranches of US$400 million each. One tranche expires in 2018 and the other in 2023.

Under the cash repurchase option, Sime Darby said it will pay 98% of the face amount of the 2018 due sukuk, and 97% of the sukuk due in 2023.

The cash repurchase tender offer will begin today and close by May 11 this year.

Sime Darby said eligible sukuk holders that tender before May 2 will get additional cash payment equal to 3% of the face amount of these sukuk.

Under the second option, Sime Darby is seeking consent for Sime Darby Plantation to be the new obligor in place of Sime Darby in its capacities as obligor, seller and lessee. It is also seeking consent to amend certain "consequential changes" to the terms and conditions of the programme, including waiving the occurrence of a dissolution event as a result of the reorganisation.

Sime Darby said the tender offers are made in connection with the proposed reorganisation of its businesses announced early this year.

On Feb 27, Sime Darby announced a restructuring plan that will result in the creation of three independent pure play companies to be listed on Bursa Malaysia.

"The plan is expected to involve an internal restructuring and share distribution exercise prior to the proposed listing of its plantation and property businesses. With the listing, the three companies, namely Sime Darby Plantation, Sime Darby Property Bhd and Sime Darby, with their focused businesses will be well positioned for further growth in their respective sectors globally and regionally," it had said.

Sime Darby closed unchanged at RM9.28 for a market capitalisation of RM63.1 billion.

 

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