KUALA LUMPUR (Dec 6): Sime Darby Plantation Bhd is divesting its entire stake in Sime Darby Plantation Liberia Inc (SDPL) to Mano Palm Oil Industries (MPOI).
This was approved by the group’s board of directors. The Government of Liberia has also consented to the divestment of SDPL’s shares to MPOI.
"This decision is part of Sime Darby Plantation’s current asset monetisation exercise, which includes the divestment of underperforming assets or assets that have achieved its full value potential for disposal," it said in a bourse filing today.
It was confirming a Reuters report today, quoting a Liberian government minister as saying Sime Darby Plantation would be selling its Liberian operations to Mano Manufacturing Co, of which MPOI is a subsidiary.
Sime Darby Plantation also said it is currently working together with MPOI in finalising the terms and conditions of this divestment exercise via a sale and purchase agreement which is targeted to be signed by the end of 2019, with completion of the transaction in the first quarter of next year.
"Any further details and updates on this divestment exercise will be announced in due course," it added.
Sime Darby Plantation had been reviewing its Liberian operations — which consists of a 63-year concession signed in 2009 for 220,000-hectares of land in north-western Liberia, constituting a fifth of its global land holdings.
At 2.47pm, Sime Darby Plantation shares were up 13 sen or 2.52% at RM5.28, giving it a market capitalisation of RM36.35 billion.