Group chief executive officer Datuk Jeffri Salim Davidson said the conglomerate is in its second year of a five-year value creation plan to focus on revenue enhancement, cost optimisation and portfolio rationalisation as well as expanding its business.

KUALA LUMPUR: Sime Darby Bhd (SDB) would continue divesting its non-core assets at the right time and valuation, while focusing on its core businesses - motors and industrial divisions.

Group chief executive officer Datuk Jeffri Salim Davidson said the conglomerate is in its second year of a five-year value creation plan to focus on revenue enhancement, cost optimisation and portfolio rationalisation as well as expanding its business.

“We have about 8,800 acres land in Labu, Negri Sembilan with a market value of RM2.5 billion. 

“If the high-speed rail (HSR) construction plan comes to fruition, we will be the beneficiary as the land is located in the HSR’s current plan,” he said.

Group chief financial officer Mustamir Mohamad said SDB also signed a five plus three year first right to buy agreement with Sime Darby Property Bhd to acquire the land.

“We have more merger and acquisition plans in the pipeline. We have allocated between RM500 million and RM600 million maintenance capital expenditures in the financial year ending June 30, 2020 (FY20),” he added.

Mustamir said SDB had spent about RM900 million for acquisition of Gough Group Ltd and three car dealerships in Sydney, Australia.

Jeffri said SDB also on the lookout to dispose a 30 per cent stake in Tesco Malaysia, which is deemed as a non-core business.

“The best way is to exit but we are not in a hurry,” he said.

On the potential disposal of the Eastern and Oriental Bhd, Jeffri said the company would do so at the right value as the property segment was impacted by the

current market conditions.

He said SDB also intends to expand its healthcare business through greenfield and brownfield.

“We have a good five-year joint-venture with Australia-based Ramsay Health Care Ltd as the healthcare profit has been growing during the period,” he said.