Sime Darby sells loss making Liberia business for US$1 | Malay Mail

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KUALA LUMPUR, Jan 16 — Sime Darby Plantation Berhad (SDP) today announced the sale and cessation of its loss-making Liberia business, Sime Darby Plantation (Liberia) Inc (SDPL), to Mano Palm Oil Industries Limited (MPOI), for US$1 (RM4.06). In a statement today, SDP said that under the sales and...

BY YISWAREE PALANSAMY

In a statement today, SDP said that under the sales and purchase agreement , SDP’s entire equity in SDPL was sold to MPOI for a total cash consideration of US$1 plus an Earn-Out p+Payment sum, which will be determined by the average future crude palm oil price and future CPO production of SDPL in year 2022.

He said that SDPL has been a continuously loss-making operation since its inception. In 2018 and 2019, it registered operational losses of US$19 million and US$16 million respectively, well before asset impairment. “Since we began our foray into Liberia in 2009, SDPL has only managed to plant on just over 10,300 hectares of land due to various operating challenges. This is in spite of a 63-year concession that we were given to develop 220,000 hectares of land. The existing size of the plantation is relatively small to make a significant impact to our bottom line,” Helmy said.

Helmy said that the selection of MPOI was made based on the company’s standing and track record, as well as its readiness to commit to SDPL’s existing obligations to its employees, local communities and suppliers. This also includes the development of an Outgrowers’ Programme for the benefit of the local communities in Liberia.

 

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Also cannot make profit event CPO price rm3k above. Please sell this liability ASAP

And who had to suffer because of the decision made Low paying staff and workers cut...

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