Sime Darby exits Hotel Equatorial Melaka for RM55.35m

Officials familiar with the deal said that the management might not be keen to issue the perpetual debt paper if there was any downgrade on Sime Darby

KUALA LUMPUR: Sime Darby Bhd has exited from its stake in Syarikat Malacca Straits Inn Sdn Bhd, which owns and operates Hotel Equatorial Melaka, for RM55.35mil.

Sime Darby Property Bhd has on Thursday sold its entire stake in Syarikat Malacca Straits comprising 55% equity interest for RM45.92mil and 78.6% comprising 9.43 million  redeemable preference shares to  Permodalan Nasional Bhd.

Syarikat Malacca Straits's core business is owning and operating Hotel Equatorial Melaka at Bandar Hilir.

“The disposal will not have a material effect on the earnings or net assets of the Sime Darby Group for the financial year ending June 30, 2016,” said Sime Darby.