Apr 9, 2010

SIME DARBY BID

Sime Darby (RM8.74; Hold; Price Target: RM9.10; SIME MK)

Sime’s Emery Oleo reported to have launched bid for Kulim’s NatOleo The Business Times reported that Sime Darby’s 50% unit Emery Oleochemicals (JV with PTT Chemical International) has launched a bid for Kulim's oleochemical plant, estimated to be worth around RM300m. It was reported
that Sinar Mas Group is also bidding for the same asset. The plant was reported to have an annual capacity of 430,000 MT (based on annual report, they produced fatty acids, glycerine, esters, soap noodles and palm wax). Kulim said in its announcement Monday that it had received several bids from third parties who are interested to acquire its stake in Natural Oleochemicals (NatOleo).  source: HDBS Vickers