Hot Stock Sime Darby rises 0.4% on proposed New Britain Palm Oil buy

by **Cals** Fri 10 Oct 2014, 00:50

Hot Stock Sime Darby rises 0.4% on proposed New Britain Palm Oil buy

Business & Markets 2014

Written by Meena Lakshana of theedgemalaysia.com

Thursday, 09 October 2014 13:14

KUALA LUMPUR (Oct 9): Sime Darby Bhd rose as much as 0.4% on the group's intention to purchase the entire equity stake in New Britain Palm Oil Limited (NBPOL). The planned purchase includes Kulim (M) Bhd's 48.97% stake in NBPOL.

At 12.30pm, Sime Darby rose to settle at RM9.12 with some three million shares changing hands. The stock had earlier risen four sen to an intra-day high of RM9.13.

Sime Darby's share trade was suspended between 9am and 10am today in conjunction with the announcement.

Sime Darby announced today the group through its subsidiary Sime Darby Plantation Sdn Bhd, intended to make a cash offer for all the shares in Papua New Guinea (PNG)-based NBPOL for GBP1.07 billion (RM5.62 billion) cash.

In Papua New Guinea Kina (PGK) terms, the offer is valued at PGK4.32 billion.

Sime Darby said its offer price of GBP7.15 per share represented a premium of 85% to NBPOL’s closing price on the London Stock Exchange yesterday.

The offer of PGK28.79 per share is a 79.9% premium to NBPOL’s closing price on the Port Moresby Stock Exchange yesterday.

Today, Sime Darby said the decision to buy NBPOL followed a letter dated Oct 1, 2014 from PNG Prime Minister Peter O’Neill, who reiterated that Sime Darby’s acquisition of NBPOL would not be contrary to PNG's national interest.

Meanwhile, Kulim's share trade has been suspended between 9am and 5pm today. Kulim said it would deliberate on Sime Darby's offer and make an announcement by the end of today.

Yesterday, Kulim shares closed at RM3.25 for a market capitalisation of RM4.16 billion.