Malaysia's Sime Darby sells stake in Singapore shipping Co
Sime Darby Berhad expects to book a gain of RM452 million (US$123 million) from the sale of its 29.3 per cent stake in Singapore shipping firm Jaya Holdings Limited. On Oct 20, Sime Darby's wholly-owned subsidiary, Sime Darby Eastern Limited, signed an agreement to sell 223,019,640 Jaya shares to Nautical Offshore Services at S$1.35 a piece for a total cash consideration of S$301.1 million (US$191.5 million).Sime Darby said the disposal price includes the final dividend of S$0.055 (tax exempt) per Jaya share or such final dividend as may be approved by shareholders of Jaya at the forthcoming annual general meeting, scheduled for 27 October 2006."The proposed disposal is expected to result in a gain on disposal of RM452 million in the financial year ending 30 June 2007," Sime Darby said in a statement to Bursa Malaysia on Oct 20.It said the sale of the Jaya stake will enable it to realize a gain on its investment in Jaya which the board decided was not a strategic part of the group's core businesses.Proceeds from the sale will be utilised for Sime Darby's working capital and reinvested in its core businesses.Sime Darby said the disposal of its Jaya stake is expected to be completed by 1 November 2006.The Jaya group is mainly involved in offshore shipping and shipbuilding. For the financial year ended 30 June 2006, the Jaya Group operated a diversified fleet of 34 offshore vessels servicing the oil and gas, marine construction and marine-related industries.