Sime Darby cuts debt with $571m follow-on

The Malaysian company continued an aggressive deleveraging drive with a bumper share sale.
Sime Darby is the world's largest palm oil producer.
Sime Darby is the world's largest palm oil producer.

Malaysian conglomerate Sime Darby raised RM2 36 billion ($571 million) from an after-market share placement on Tuesday, taking another step to deleverage its debt-laden balance sheet

The company, well-known for its plantation business, sold 5% of its existing share capital through an accelerated bookbuild after the market closed

Sime Darby sold 316 4 million shares at RM7 45 each, the top of a tight price range that only went as low as RM7 40 The company was able to achieve that price after investors placed orders worth RM6 2 billion across the range

Syndicate bankers said there was almost no price sensitivity in the book The deal was covered shortly after launch...

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