Sime Darby Keen to Take Over NBPOL

Kuala Lumpur: Sime Darby Plantation Sdn Bhd intends to submit a cash offer to acquire all of the 49.87 percent stake in New Britain Palm Oil Ltd (NBPOL) of Kulim (Malaysia) Bhd for a cash consideration £ 1,073 billion. The acquisition involves 85 percent premium over the last closing price on the London Stock Exchange NBPOL on October 8, 2014 and 79.9 percent premium over the last closing price in Port Moresby Stock Exchange at a price of £ 7.15 per share.

In a filing to Bursa Malaysia, Sime Darby believes the bid at a premium price was greater than the current market price and liquidity opportunities are very attractive to all shareholders NBPOL.

President and Group Chief Executive of Sime Darby Tan Sri Mohd Bakke Salleh said the acquisition is a milestone for the largest producers of palm oil and palm kernel and it is believed it will bring benefits and contribute significantly to the company in the next year.

“This acquisition is expected to close by the end of this year and increase the number of land bank for both companies to nearly one million hectares with the acquisition which will be financed through 20 percent of internally generated funds and external borrowings of 80 percent,” he said in a statement yesterday.

Sime Darby decided to make the deal after receiving a letter dated 1 October 2014 from the Prime Minister of Papua New Guinea (PNG), which acknowledged that Sime Darby keen to make a general offer for NBPOL.

Sime Darby also is confident in the growth prospects of PNG, Solomon Islands and other markets held by NBPOL.