Sime Darby can create value and cut debt by breaking up

By Khairie Hisyam

Will Bakke break up Sime Darby inside story banner 01

Eight years after a mega merger exercise, the behemoth that is Sime Darby has lost more than a fifth of its market value and is mired in some RM18 billion in debt. Regaining lost ground and advancing beyond likely means another mega restructuring to unlock the value within – breaking up the parts brought together all those years ago. It may even negate the need for a rights issue to reduce debt.

Issues
#1

To break up or not?

Eight years after a mega restructuring into the conglomerate it is today, Sime Darby is now at a crossroads. Can the group manage its heavy borrowings to avoid a rating downgrade while addressing ...
#2

The case for a break-up

Mired with issues on more than one front, Sime Darby seeks to ease the strain on its balance sheet amid turbulent market conditions for most of its divisions. The question remains however if ...
#3

Billions to unlock via demerger

Recent months have seen valuations fall as global uncertainty and turbulence spur a selldown in the stock market. That said, Sime Darby still retains substantial value to be unlocked via ...
#4

A redundant conglomerate

As conglomerate Sime Darby grapples with myriad issues, the most pressing being a ticking clock to pare down debts substantially, the case for a demerger grows stronger. KINIBIZ shines the ...