The potential breaking up of the Sime Darby conglomerate could - TopicsExpress



          

The potential breaking up of the Sime Darby conglomerate could possibly result in it becoming a pure plantation company, alongside rivals such as IOI Corp Bhd and Kuala Lumpur Kepong Bhd (KLK). But analysts question the necessity of undertaking several corporate exercises when its supposed aim is to focus on its plantation business. “Why should it take four or five steps to get there, when it is simpler to just list its plantation division?” asks an analyst. The analyst expressed surprise at the notion, adding that Sime Darby is not on a “super growth path”. “If it is going for listing, the proceeds have to be well-utilised. Unless it has a big expansion plan, it will have to consider if there is investor appetite for its stock,” he says.
Posted on: Mon, 14 Jul 2014 07:16:09 +0000

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