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...

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