KUALA LUMPUR: Sime Darby Property Bhd has proposed an internal reorganisation to streamline its structure into separate identifiable business streams to better reflect the group’s diverse operations.
As per the proposal, Sime Darby will transfer all its assets, liabilities and business undertakings to its wholly-owned subsidiaries and operate purely as an investment holding company.
At present, Sime Darby Property is principally involved in property development, management services and acting as the listed investment holding company of the group.
“The board believes that the streamlining exercises will enable Sime Darby Property to establish a leaner corporate structure with separate identifiable business streams.
“This will provide more flexibility for business operations and efficiency, facilitating effective management of the different businesses moving forward,” it said in a filing with Bursa Malaysia.
Under the proposal, all the township developments under the group will be transferred to the respective subsidiaries – Sime Darby Property (Bukit Jelutong) Sdn Bhd, Sime Darby Property (City of Elmina) Sdn Bhd, Sime Darby Property (Lagong) Sdn Bhd, MVV Holdings Sdn Bhd and Sime Darby Property (H&L) Sdn Bhd.
Sime Darby Property said the reorganisation is expected to provide strategic clarity and focus in the respective subsidiaries’ core business activities, and to better serve the local community.
It added that implementing a clear segregation of townships will allow better evaluation of each township’s performance, with the financial and operational performance of each township being clearly delineated and reportable separately.
Meanwhile, the group’s management services business will be transferred to SDP (Management Services) Sdn Bhd to focus on providing management services and support to the property development business, investment and asset management business, leisure business and internal shared services.
It said the transfer could help the unit centralise resources for better coordination, streamline operations, eliminate inefficiencies, and optimise resource allocation and utilisation.
The group has entered into reorganisation agreements with its subsidiaries by way of a members’ scheme of arrangement under Sections 366 and 370 of the Companies Act, 2016.
The proposed internal reorganisation is subject to the approval of shareholders and the relevant authorities.