KUALA LUMPUR (March 26): Sime Darby Bhd said today it has disposed of its last block of shares in Eastern & Oriental Bhd for RM93.5 million 10 years after it bought into the property developer.
The group told a bourse filing its indirect wholly-owned subsidiary Sime Darby Nominees Sendirian Bhd (SD Nominees), has entered into a share sale agreement today to dispose of its entire stake in E&O, comprising 155.83 million ordinary shares and representing approximately a 10.89% equity interest to Amazing Parade Sdn Bhd for RM93.5 million cash or 60 sen per share.
The buyer, Amazing Parade, is the private vehicle of E&O non-independent and non-executive director Datuk Tee Eng Ho and his brother Tee Eng Seng.
Amazing Parade’s shareholding will increase to 42.71% from 31.82%. Consequently it is making a mandatory takeover offer at 60 sen per share.
The Tee family bought its first block from Datuk Tham Ka Hon.
Sime Darby said the disposal is in-line with its ongoing non-core asset rationalisation exercise.
The group also said the total proceeds will be received by SD Nominees upon the settlement on March 30, 2021.
“The disposal is not expected to have a material effect on the earnings per share, net assets per share, and gearing of Sime Darby for the financial year ending June 30, 2021,” it said.
Sime Darby closed one sen or 0.41% lower at RM2.40 today, valuing the group at RMm16.33 billion.
Sime Darby emerged as E&O largest shareholder in 2011 when it bought a 30% stake in the company at RM2.30 per share or RM766 million from E&O managing director Datuk Tham Ka Hon and several other major shareholders of E&O.
In 2014, Sime Darby sold 110 million shares or 9.9% stake back to Tham at RM2.90 per share or RM319 million.
In 2016, it sold an additional block of 125.98 million shares or 10% stake back to Tham at RM2.60 or RM342 million.