GROUP CLOSER TO EXITING LIBERIA OPS

Sime Plantation says in talks with several entities on sale of US$60m African asset

SIME Darby Plantation Bhd (Sime Plantation) is edging closer towards exiting Liberia, having been approached by several parties keen to take over its loss-making oil palm operations there.

Its US$60 million (RM244 million) asset in the African nation has been dragging down the plantation giant’s bottom line in the past years.

Deputy managing director and chief operating officer for upstream business Mohamad Helmy Othman Basha said yesterday a review was almost complete and would be presented to the board and the annual general meeting in the next few months.

“Selling the asset is one of the options we are looking at to exit the country. Other options include handing back the asset to the Liberian government,” he said after a session at Invest Malaysia 2019, here, yesterday.

Late last month, executive deputy chairman and managing director Tan Sri Mohd Bakke Salleh had said Sime Plantation was reviewing its investment in Liberia and a decision would be made within three months.

According to the company’s website, the estates in Liberia are managed by Sime Darby Plantation (Liberia) Inc.

It has signed a 63-year concession agreement with the Liberian government to develop 220,000ha in Grand Cape Mount, Bomi, Gbarpolu and Bong into oil palm and rubber plantations. To date, 10,508ha had been planted in Matambo, Grand Cape Mount, Zodua, Bomi and Lofa estates.

Helmy said the company had signed non-disclosure agreements with a few prospective buyers over the potential sale of the asset in Liberia.

“We are talking to a few potential buyers who are familiar with the region.”

It is also looking at selling other non-performing assets.

Helmy said Sime Plantation would focus more on its downstream business, with an immediate target of 20 per cent revenue contribution to the firm.