The demergers of Sime Darby Property and Sime Darby Plantation do not involve any securities issuance or offering as it is undertaken by way of dividend-in-specie to Sime Darby Bhd shareholders.
Earlier, Sime Darby Bhd said it was planning to conclude the spin-off exercise by the end of November. The trading and logistics segments will remain under Sime Darby Bhd.
According to Sime Darby Property’s prospectus filed today, it has existing landbank with an estimated gross development value (GDV) of RM101.1 billion.
Its property development business is complemented by two other business segments – property investment and leisure and hospitality.
Sime Darby Property owns about 16,938 acres of remaining developable landbank in the Klang Valley, Negri Sembilan and Johor, of which 10,212 acres are located within its existing 23 active townships as well as integrated and niche developments.
“These developments are estimated to generate a GDV of about RM86.5 billion. The remaining 6,726 acres of landbank are for our future development. Our developable land bank will be increased by about 1,944 acres following the completion of the Malaysia Vision Valley sale and purchase agreement,” it noted.
Sime Darby Property said within the 23 townships as well as integrated and niche developments, it has 39 ongoing property development phases with a total estimated GDV of RM5.5 billion.
For the financial year ended June 30, 2017, Sime Darby Property’s net profit declined 25.7% to RM709.1 million from RM954.76 million in the previous corresponding period.
Meanwhile, Sime Darby Plantation said it has a total landbank of 983,752 ha, of which 602,509 hais planted with oil palm, 13,454 ha with rubber and 5,613 ha with sugarcane.
It is now the world’s largest producer of certified sustainable palm oil, with around 20% market share of the world production by capacity as at July 31.
Sime Darby Plantation’s net profit jumped more than three fold to RM3.55 billion for the financial year ended June 30, against RM1 billion a year ago.
Source: The Sun Daily