PETALING JAYA: Sime Darby Bhd is acquiring three luxury car dealerships in Sydney, Australia for AU$112 million (RM321 million).
The three dealerships represents the BMW, MINI, Volkswagen, Jaguar and Land Rover marques.
The group told Bursa Malaysia that its wholly owned subsidiaries under Sime Darby Motors Sdn Bhd had entered into definitive agreements with Inchcape Australia Ltd’s automotive retail unit Trivett for the acquisition.
Sime Darby said the proposed acquisition is in line with the group’s strategy in the Australian retail luxury segment and will strengthen the group’s presence and brand visibility in Parramatta,
which is one of Sydney’s most recognised automotive retail locations.
“The consideration sum was negotiated based on the agreed fair value of the purchased net assets and will be funded by external borrowings.”
It said the purchased net asset includes all properties, business assets and liabilities that are necessary to operate the car dealerships.
However, the group said that the acquisition of such nature and size are conditional upon terms and conditions which includes written consents from the Foreign Investment Review Board of Australia as well as the brand principals.
Sime Darby said the proposed acquisition is expected to be completed by early December 2019.
At the midday break, its share price slipped 3 sen to RM2.31 with 3.08 million shares changing hands.