Which entities will receive the property development business?

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Sime Darby Property's Proposed Internal Reorganisation Will Transfer Property Development Business to Five Subsidiaries

Sime Darby Property Bhd (SDP) has put forth a proposal for an internal reorganisation aimed at streamlining its business operations. Under this plan, the property development activities will be transferred to five distinct 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. This restructuring is intended to create a leaner corporate framework and better delineate the group's varied business segments.
Property Development Business Transfer

The core of the proposed reorganisation involves the segregation of SDP's property development arm. This segment will be distributed among five specific entities. 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 are designated to receive these development responsibilities. This move aims to create clearer lines of accountability and operational focus within the property development sector.
Management Services to be Hived Off

In parallel with the property development transfer, the management services business will be consolidated under a separate subsidiary. This function will be moved to SDP (Management Services) Sdn Bhd. This segregation ensures that management services operate distinctly from the development and investment holding functions, contributing to a more organised corporate structure.
SDP to Function Solely as Investment Holding Company

Following the completion of the proposed internal reorganisation, Sime Darby Property Bhd itself will transition to operating purely as an investment holding company. Currently, SDP is involved in property development, management services, and acts as the listed investment holding entity for the group. The proposed changes will see these operational businesses housed within dedicated subsidiaries, with the parent company focusing on its investment portfolio.
Reorganisation Subject to Approvals and Timeline

The internal reorganisation is being executed through reorganisation agreements by way of a members’ scheme of arrangement, as stipulated under Sections 366 and 370 of the Companies Act, 2016. This proposal is contingent upon securing the necessary approvals from shareholders and relevant regulatory authorities. The company anticipates the completion of this exercise by the fourth quarter of 2024.

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Which entities will receive the property development business?

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