Sime Darby

Sime Darby Berhad
Publicly traded government-linked company
Traded as MYX: 4197
ISIN MYL4197OO009
Industry Conglomerate
Predecessor Sime Darby
Guthrie
Golden Hope
Founded 2007
Headquarters Kuala Lumpur, Malaysia
Area served
 Asia Pacific
Key people

Tan Sri Dato’ Sri Dr Wan Abdul Aziz Wan Abdullah, Non-Independent Non-Executive Chairman

Jeffri Salim Davidson, Group Chief Executive Officer
Products Industrial, Motors, Logistics
Revenue RM31 billion (2017)[1]
RM738m (2017)[1]
RM795m (2017)[1]
Number of employees
 Over 20,000
Parent Permodalan Nasional Berhad
Website www.simedarby.com

Sime Darby Berhad (MYX: 4197) is a Malaysian trading conglomerate. Its core businesses operate in and serve the industrial, motors and logistics sectors as well as the healthcare, insurance, and retail segments.

Background

The modern Sime Darby Berhad corporation was created in 2007 through a merger of three companies.

Sime, Darby and Co. Limited

In October 1910, British businessmen William Sime and Henry Darby established Sime, Darby and Co., a fledgling player in the lucrative rubber industry. The company later diversified to cultivating palm oil and cocoa and met with enormous success. At the time of the company's founding, William Middleton Sime was a 37-year-old Scottish adventurer and fortune seeker. He had two failed ventures behind him – one in import-export business and the other in coffee plantations – when he left his job as a mercantile assistant in Singapore. Henry Darby was a wealthy 50-year-old English banker who owned property in Northern Malaya.[2]

A senior partner of the audit firm of the Sime Darby group was found dead in September 1973.[3][4] In two suicide letters, he alleged he was doped and deceived by Dennis Pinder, chairman and managing director of Sime Darby, related to the audit of Sime Darby.[4] Subsequently, Dennis Pinder was alleged that he misappropriated over S$3 million.[4] At that time, Sime Darby was one of the largest companies in Singapore and Malaysia. Pinder was jailed after pleading guilty to criminal breach of trust in October 1975.[3]

In 1977 Sime Darby Holdings was acquired by Malaysian investors – mainly through Tradewinds (Malaysia) Sendirian Berhad. In December 1979 with the incorporation of two new Malaysian entities, Sime Darby Berhad (SDB) and Consolidated Plantations Berhad (CPB), Sime Darby moved its headquarters to Kuala Lumpur and became a Malaysian registered and managed concern.[5]

Guthrie

The company was founded in Singapore in 1821 by Alexander Guthrie. It was the first British trading company in South East Asia. Guthrie introduced rubber and oil palm in Malaysia in 1896 and 1924 respectively. Guthrie Group was made a public company in 1987 and was subsequently listed on the Kuala Lumpur Stock Exchange (KLSE) in 1989 in what was then the largest public issue in Malaysia.[6]

Golden Hope

In 1905 Harrisons and Crosfield, a British tea and coffee trading company, purchased several small estates in Malaysia for £50,000 and amalgamated them to form the Golden Hope Rubber Estate.[7] In 1982 Harrisons and Crosfield sold three large plantation groups – Golden Hope, Pataling, and London Asiatic[8] – to Malaysian concerns for £146 million.[7] The business was renamed Golden Hope Plantations Berhad in 1990 after Pemodalan Nasional Berhad took majority equity of the company. Its interests originally were in tropical agriculture but, while plantations have remained a core business interest, the company has diversified into other areas including glycerine manufacture, fruit juices and real estate. The group now has 83 subsidiaries based in seven countries. The main estate and plantations are Carey Island and Banting in Selangor.[9]

Merger

In January 2007, the "three Malaysian giants": Sime Darby, Guthrie and Golden Hope, merged into the vehicle entity named Synergy Drive and on 27 November 2007, Synergy Drive was renamed Sime Darby Berhad.[10] Sime Darby had a land bank of 850,000 hectares in 2011.[11] The Malaysian government-linked company Amanah Saham was the largest stakeholder in 2011, followed by the government's Employees Provident Fund and the government-run Permodalan Nasional Berhad (PNB, the national capitalization agency).[12] CEO of the firm was Datuk Mohd Bakke Saleh, who was also the CEO of Bank Islam, another government-linked company, in 2010.[13][14]

Listing of Sime Darby Plantation and Sime Darby Property

In November 2017, Sime Darby Berhad listed its subsidiaries, Sime Darby Plantation Berhad and Sime Darby Property Berhad on the Bursa Malaysia’s Main Market, creating three distinct pure-play companies.[15] The demerger of the giant into separate “pure plays” aimed to unlock the value of the companies and provides the visibility on each firm’s performance. Jeffri Salim Davidson is the current group chief executive officer, Mustamir Muhamad is the chief financial officer and Datuk Thomas Leong Yew Hong is the group chief strategy officer. Permodalan Nasional Berhad has a 52% stake in Sime Darby Bhd.[16]

Businesses

Industrial and motor divisions

Sime Darby is an international conglomerate involved in many types of businesses. Its industrial and motor divisions are the main revenue generators of the business.[17]

Other businesses

Sime Darby Global Services Centre has 510 employees and provides services such as human resource management, finance, procurement services and IT to operating units in the Sime Darby Group. Some of these services include the processing of account payables and receivables, book keeping services, human resource administration and payroll services, procurement services (sourcing and vendor registration), corporate card services as well as information technology services (such as server hosting).[18]

Sime Darby Lockton Insurance Brokers Sdn Bhd (26364-U) is an approved insurance broker under Financial Services Act 2013 and regulated by Bank Negara Malaysia. The company provides risk management, insurance and takaful solutions. Sime Darby Berhad has a 60% stake in Sime Darby Lockton Insurance Brokers Sdn Bhd, via its subsidiary, Sime Darby Allied Products Berhad. Lockton Overseas Limited owns the remaining 40% stake.[19]

Eastern and Oriental stake

In August 2011, Sime Darby purchased a 30% stake in Penang-based property developer Eastern and Oriental Bhd (E&O) for RM766 million or RM2.30 per share. It was made at a 60% premium to the market price then from three shareholders – E&O managing director Terry Tham, prominent businessman Wan Azmi Wan Hamzah and Singapore stockbroking group GK Goh Holdings Ltd.[20]

In 2014, Sime Darby sold 110 million ordinary stock units of RM1 each in Eastern & Oriental Bhd (E&O) to Morning Crest Sdn Bhd for RM319 million or RM2.90 per stock. Upon completion of the sale, Sime Darby's equity stake in E&O reduced to about 22% (excluding treasury stocks).[21]

In 2016, Sime Darby who then owned a 22.2% stake in E&O sold a 10% stake for RM323.3mil or RM2.45 per share to E&O group managing director Datuk Seri Terry Tham.[22]

Corporate Social Responsibility

Yayasan Sime Darby is the philanthropic arm of Sime Darby. Sime Darby Bhd agreed to contribute RM 20 million annually to Yayasan Sime Darby (Sime Darby Foundation) for 5 years from November 2017.[18]

See also

References

  1. 1 2 3 "Annual Report 2017" (PDF). Sime Darby. Retrieved 18 June 2018.
  2. ↑ "Malaysia targets alternative fuels market". The Telegraph. 22 December 2006. Retrieved 19 December 2016.
  3. 1 2 Lim, Peter H L (2009). 1959-2009 Chronicle of Singapore Fifty years of Headline news. Editions Didier Millet. ISBN 9789814217750. Retrieved 1 August 2016.
  4. 1 2 3 Waterhouse, Ronald. Child of Another Century. The Radcliffe Press. ISBN 9780857733146. Retrieved 1 August 2016.
  5. ↑ "Transnational corporations from Asian developing countries: The internationalisation characteristics and business strategies of Sime Darby Berhad". International Journal of Business Science and Applied Management. January 2008. Retrieved 19 December 2016.
  6. ↑ "September 1981 – The Dawn Raid". Hifzan Shafiee. Retrieved 18 June 2018.
  7. 1 2 "Answers - The Most Trusted Place for Answering Life's Questions". Answers.com. Retrieved 21 January 2016.
  8. ↑ "AIM25 collection description". Retrieved 21 January 2016.
  9. ↑ "Geostatistical analysis of N, P and K in Dusun Durian Estate Golden Hope Plantations Bhd. Banting, Selangor". United Nations. 2002. Retrieved 18 June 2018.
  10. ↑ "A new Malaysian global champion is born". Sime Darby. Archived from the original on 1 December 2007. Retrieved 21 February 2018.
  11. ↑ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 99
  12. ↑ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 80/81
  13. ↑ Helena Varkkey, The Haze Problem in Southeast Asia (Abingdon: Routledge, 2015), p. 81
  14. ↑ "Board of Directors". Sime Darby. Archived from the original on 24 March 2016. Retrieved 21 January 2016.
  15. ↑ "Sime Darby Prop and Plantation see weak start on debut". www.thesundaily.my. Retrieved 2018-05-30.
  16. ↑ "Shareholder & Dividend Info - Sime Darby Berhad". www.simedarby.com. Retrieved 18 June 2018.
  17. ↑ "Industrial division to continue driving FY18 growth at Sime Darby". The Edge Markets. 23 February 2018. Retrieved 18 June 2018.
  18. 1 2 "Proposed Internal Restructuring". Bursa Malaysia. Retrieved 18 June 2018.
  19. ↑ "Our Shareholders". www.simedarbylockton.com. Retrieved 18 June 2018.
  20. ↑ "Sime Darby's strange purchase and sale of E&O". Retrieved 18 June 2018.
  21. ↑ "Sime Darby reduces stake in E&O". www.thesundaily.my. Retrieved 18 June 2018.
  22. ↑ "Sime Darby sells E&O stake to Tham at lower price - Business News - The Star Online". www.thestar.com.my. Retrieved 18 June 2018.
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