KUALA LUMPUR: Sime Darby shareholders today approved a 5 per cent share placement to raise up to RM2.38 billion, said group president and chief executive officer Tan Sri Bakke Salleh.
“The shareholders voted very strongly for this book building exercise,” he told reporters after the company's shareholders meeting here today.
The 5 per cent share placement at an average pricing of RM7.51 is expected to raise as much as RM2.38 billion.
Major shareholders involved in this exercise are AmanahRaya Trustees Bhd (for Amanah Saham Bumiputera), the Employees Provident Fund and Permodalan Nasional Bhd.
Bakke noted that money raised from this initiative will go towards the group’s working capital and to repay borrowings.
“We want to bring down our gearing of 44 per cent as at end June 2016 to 38 per cent. God willing, we’ll be able to complete this exercise by year-end,” he said.
Sime Darby is Malaysia's largest conglomerate with core businesses in plantation, property, heavy machinery, motors, seaport operations and healthcare.