In the case of Sime Darby Bhd’s decision to walk away from - TopicsExpress



          

In the case of Sime Darby Bhd’s decision to walk away from buying a controlling stake in New Britain Palm Oil Ltd (NBPOL), indications are that the sticky issues were about management control and pricing. The two were intertwined. Sime Darby is believed to have put in the highest bid, which is why it was invited to enter into a two-month exclusivity period of negotiations with the vendor, Kulim (Malaysia) Bhd. But there were issues related to whether it would have total control over NBPOL despite becoming the largest shareholder of the company. It wouldn’t look good for Sime Darby to pay a high premium for the controlling block and yet not have full control over the management of NBPOL.
Posted on: Wed, 08 Oct 2014 09:03:36 +0000

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