Sime Derby laying out $468m in delisting bid

PUBLISHED : Wednesday, 29 November, 2000, 12:00am
UPDATED : Wednesday, 29 November, 2000, 12:00am

Malaysian conglomerate Sime Darby wants to privatise its Hong Kong-listed vehicle distributor Sime Darby Hong Kong in a HK$468 million deal.

It is offering shareholders of the 25.1 per cent it does not own HK$4 cash a share.

The shares will be cancelled and the cancellation price represents a 35.6 per cent premium to the closing price of the counter on November 22, the last trading date before it was suspended.

The offer price also represents a 37.9 per cent premium to the company's net asset value of HK$2.90 a share as at June 30. The counter will resume trading today.

Upon the scheme becoming effective, expected on April 30 next year, Sime Darby HK's listing will be withdrawn.

The parent firm said the privatisation proposal was launched because Sime Darby HK would not require a listing status to raise equity finance in the foreseeable future.

On the other hand, the counter's trading volume had been consistently low since the middle of last year, with an average daily volume of less than 300,000 shares.

The parent firm said it did not believe its Sime Darby HK's trading price reflected the value of the company.