KUALA LUMPUR: Sime Darby Bhd’s restructuring plan to create three stand-alone businesses in the plantation, property as well as trading and logistics sectors could lead to a potential de-rating of the stock, say analysts. “These divisions are the key earnings drivers and account for around 80% of our sum-of-parts valuation for Sime Darby. To recap, Sime Darby announced on Jan 26 its plan to create pure plays to unlock value for the group. The exercise could see the plantation and property pure plays listed on Bursa Malaysia as Sime Darby Plantation Bhd and Sime Darby Property Bhd respectively, while the group’s trading and logistics business will remain under Sime Darby which will retain its listed status. In its Jan 27 note on Sime Darby, Kenanga Research said the group could raise some RM27.2 billion from the pure play exercise.

Source: The Edge Markets February 02, 2017 00:42 UTC