PM: Don't pre-empt Sime Darby decision

Written by Chua Sue-Ann
Friday, 11 September 2009 21:18


KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak declined comment on reports that the government was offering a stake of up to 10% in PLANTATION [] conglomerate SIME DARBY BHD [] to China, stating that he did not wish to "pre-empt" any decision.

Speaking to reporters after chairing the Umno supreme council meeting here, Najib said he did not want to pre-empt any decision and that an announcement would be made once a decision was reached.

Asked if talks were underway, Najib said: "We don't make statements in advance or on the basis of speculation."

The Malaysian Insider on September 4, citing unnamed government sources, reported that Najib had discussed the plan at a recent Cabinet meeting.

"Following the Cabinet meeting, the government informed the Chinese government officially of its intent to offer a stake in Sime Darby Bhd for sale. It is unclear if the targeted buyer is China’s investment agency or any particular state-owned company," The Malaysian Insider's report said.

The report also said Sime Darby is believed to be considering issuing new shares instead of asking its major shareholders — Permodalan Nasional Bhd or the Employees Provident Fund — to sell down their stakes.

However, Reuters, quoting unnamed government officials, said the government was not considering the sale.