Sime Darby offers to buy 2018 and 2023 sukuks

Malaysian Sime Darby, Japan's Mitsubishi Corporation, Tokyu Land and Hong Kong Land have also signed deals in Jakarta and surrounding areas.

PETALING JAYA: Sime Darby Bhd has launched a tender offer to purchase in cash any and all of its US$400mil sukuk due in 2018 and another US$400mil sukuk due in 2023.

In a statement yesterday, the group said that in connection with the tender offers, the group is also soliciting consent from the holders of the respective issuances. Among others, it seeks the substitution of Sime Darby Plantation Sdn Bhd in place of Sime Darby as the new obligor, seller and lessee in respect to the sukuk.

The issuer for the sukuk is Sime Darby Global Bhd.

Sime Darby also seeks the bondholders’ consent to waive the occurrence of any “dissolution event” as specified in the issuances. This is in relation to Sime Darby’s current restructuring plans, whereby it is spinning off its plantation arm into a separate listed entity.

The proposals will be subject to approval by an extraordinary resolution at an upcoming meeting. The quorum required for each meeting to consider the resolution is two or more sukuk holders or agents present, and holding or representing in the aggregate of not less than 75% of the face amount of the outstanding sukuk.

For the resolution to be passed, a majority consisting of not less than three-quarters of the votes cast will be required.

According to Sime Darby, the tender offer and consent solicitation will expire at 5pm on May 11, 2017. “Sukuk holders who submit valid tender instructions prior to this date will be eligible to receive the purchase price plus the accrued periodic distribution amounts as well as the early tender payment.”

The purchase price in relation to the 2018 sukuk is equal to 98% of the face amount of the sukuk, while the purchase price for the 2023 issue is equal to 97% of its face amount.