Friday 29 Mar 2024
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KUALA LUMPUR (July 2): Sime Darby Bhd has proposed a divestment of its China-based water management business, Weifang Sime Darby Water Management Co Ltd (Weifang Water), for US$68 million or RMB450 million (around RM275 million).

"The divestment is part of Sime Darby's strategy to rebalance its portfolio and focus on its core businesses," the conglomerate said in a statement today.

"The divestment is expected to be completed in the second half of 2018 and the proceeds will be utilised to pare down borrowings and/or to fund the group's operations," it added.

Weifang Water, stationed 2km north of Yangzi Town in Shandong province, operates two water treatment plants with a total capacity of 140,000m3 a day.

It also has a 220km pipeline network covering two-thirds of Binhai Economic Development Area.

Weifang Water will be sold to Shandong Water Environment Protection Co Ltd, a Chinese state-owned company also involved in the water management business.

At 2.05pm, Sime Darby was unchanged at RM2.45 with 441,900 shares done.

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