Sime Darby Overseas (Hong Kong) Ltd (SDOHK) has entered into an equity purchase agreement (EPA) with Overseas Hong Kong Investment Ltd (OHKIL) to dispose of a 50% equity in Weifang Sime Darby Liquid Terminal Co Ltd (WSDLT) for 60.85 million yuan (RM39.15 million).
SDOHK is a unit of Sime Darby Bhd and also an indirect unit of Sime Darby Inc in Hong Kong with limited liability.
Weifang Sime Darby Port Co Ltd is an indirect 99%-owned subsidiary of Sime Darby Inc in China, while Overseas Hong Kong Investment Ltd (OHKIL), an indirect unit of Dragon Crown Group Holdings Ltd (DCGHL).
In a filing to Bursa Malaysia today, Sime Darby said upon completion of the proposed transaction, SDOHK would hold a 50% stake, while OHKIL would hold the remaining 50%.
“The main objective of the proposed transaction is to accelerate the growth of bulk liquid business of WSDLT by leveraging the strength of DCGHL,” Sime Darby said.
The proposed transaction is expected to be completed within the first half of 2016 from the date of execution of the EPA or such other date as agreed by the parties involved in writing.
OHKIL and SDOHK have also entered into a shareholders’ agreement (SHA) for the management and administration of the affairs of WSDLT and existing liquid terminal at Weifang Port.
As at the date of the SHA, 90 million yuan of the registered capital has already been contributed.
“Both parties further agreed to contribute 110 million yuan to the registered capital of WSDLT in equal shares within 30 days after the issuance of the new business licence of WSDLT,” Sime Darby said.