LISTINGS TO UNLOCK VALUE FOR SIME DARBY
Sime Darby Plantation and Sime Darby Property shares ease on Bursa debut
THE listing of Sime Darby Plantation Bhd and Sime Darby Property Bhd as separate entities from holding company Sime Darby Bhd yesterday was aimed at unlocking value for the group and its investors.
The leaner Sime Darby is now focused on motor trading and heavy machinery businesses.
Asked on the share price performances, Permodalan Nasional Bhd chairman Tan Sri Wahid Omar, who is also Sime Darby Property chairman, replied: “We don’t look at the debut individually.
“Collectively, all three entities did better than the RM8.94 closing price before the split,” he said after the listing ceremony, here, yesterday.
Also present were Sime Darby group chief executive Jeffri Salim Davidson, Sime Darby Property managing director Datuk Seri Amrin Awaluddin and Sime Darby Plantation deputy executive chairman and managing director Tan Sri Mohd Bakke Salleh.
Jeffri said the smaller entity was unlikely to see much changes in dividend policy from the usual 50 per cent net profit payouts to shareholders.
The three pure plays of Sime Darby, Sime Darby Property and Sime Darby Plantation had a mixed debut on the local stock market yesterday morning.
Sime Darby’s counter had been suspended from Monday till yesterday’s listing of its property and plantation arms.
At the opening, Sime Darby jumped 55 sen to RM2.40 from its adjusted price of RM1.85 and Sime Darby Plantation added one sen to RM5.60 (adjusted price: RM5.59) while Sime Darby Property settled 20 sen to RM1.30 (adjusted price: RM1.50).
At the closing, Sime Darby ended 50 sen higher to RM2.35 from its adjusted price while Sime Darby Plantation eased to RM5.01 and Sime Darby Property dropped to RM1.20.
Asked on the palm oil futures pricing, Bakke said the recent decline to around RM2,600 per tonne was due to India’s higher taxes on palm oil purchase, strengthening of ringgit against the US dollar and seasonally higher oil palm fruit harvest.
“Prices are expected to trade between RM2,500 and RM2,600 per tonne over the next few weeks.
“As we enter into low cropping season in 2018, we hope to see palm oil prices rebound to higher levels,” he added.