Sime Darby receives notice of arbitration from MMHE

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KUALA LUMPUR (March 19): Sime Darby Bhd announced its indirect wholly-owned subsidiary Sime Darby Engineering Sdn Bhd (SDE) has received a notice of arbitration from Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) on March 17.

In a filing with the bourse today, Sime said the notice is for the resolution of disputes between MMHE and SDE, in relation to the sale and purchase agreement (SPA) and Supplemental Sale and Purchase Agreement (SSPA) dated March 30, 2012, for the disposal of SDE’s oil and gas business to MMHE (fundamental: 1.4; valuation: 1.8).

“The arbitration proceedings are not expected to have a material impact on the earnings and the net assets of the Sime Darby group for the financial year ending June 30, 2015,” said Sime (fundamental: 1; valuation: 0.9).

The group said it will make further announcements on any material development relating to the matter, from time to time.

Sime closed 2 sen or 0.2% higher at RM9.30, translating into a market capitalisation of RM57.64 billion.

MMHE closed 2 sen higher at RM1.15 a share, for a market capitalisation of RM1.8 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)