KUALA LUMPUR (Aug 1): Sime Darby Bhd is disposing of its 40% stake in Seriemas Development Sdn Bhd to Permodalan Nasional Bhd (PNB) for RM625 million cash to monetise the seller's real estate assets.

Sime Darby said its wholly-owned subsidiary Sime Darby Property Bhd inked the share sale agreement with PNB's unit PNB Development Sdn Bhd.

"The proposed disposal is in line with Sime Darby's strategy to unlock value through monetisation and opportunistic divestments, while enabling Sime Darby to reduce its borrowings via the proceeds from the proposed disposal.

"Barring any unforeseen circumstances, the proposed disposal is expected to be completed before the end of 2017," Sime Darby said.

According to Sime Darby, PNB Development already owned 60% of Seriemas, the assets of which include vacant tracts besides malls and hotels.

Sime Darby said its original cost of investment in Seriemas was RM449 million. Sime Darby said Seriemas was incorporated in 1984.

At 12.30pm Sime Darby rose 4 sen or 0.42% to RM9.49 with some 2.05 million shares traded. Its market capitalisation stood at RM64.54 billion. — theedgemarkets.com

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