PublicInvest lauds Sime Darby leadership change
KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest) has lapped up news of Sime Darby Bhd’s new leadership lineup for its three entities, giving the conglomerate an “outperform” call with a target price of RM9.72.
On Friday, the group announced new leadership for Sime Darby Plantations Bhd, Sime Darby Properties Bhd and Sime Darby Bhd.
Sime Darby’s demerger exercise will see separate listings of plantation and property units while other units like industrial, motor and logistics businesses will remain under the Sime Darby group.
“The management changes would see Sime Darby’s current group chief executive officer Tan Sri Mohd Bakke Salleh become Sime Darby Plantation’s executive deputy-chairman and managing director.
“Sime Darby will see a new president and group chief executive, led by Jeffri Salim Davidson, who is the current deputy group chief financial officer of the group.
“Meanwhile, both plantation and property units are on course for listing by year-end,” said PublicInvest in a research note.
It added that for its property unit, Permodalan Nasional Bhd group chairman Tan Sri Abdul Wahid Omar has been named as chairman of Sime Darby Property.
“Sime Darby’s deputy chairman Tan Sri Dr Wan Abdul Aziz Wan Abdullah has been promoted to become group chairman, while Jeffri Salim Davidson will become its president and group chief executive.
“It is important to have the right leadership to maximise the value of each entity given the sizeable assets that both companies have,” said PublicInvest.