Malaysia’s Sime Darby tenders, seeks consents for sukuk due 2018, 2023

By Susanna Moon

Chicago, April 18 – Sime Darby Bhd. began a tender offer and consent solicitation for the $400 million of sukuk due 2018 and $400 million of sukuk due 2023 issued by Sime Darby Global Bhd.

The purchase price will be 98% of par for the sukuk due 2018 and 97% of par for the sukuk due 2023.

In addition, the company is offering an additional cash payment of 3% of par for notes tendered by the early voting deadline of 5 a.m. ET on May 3.

The tender offers will continue until 5 a.m. ET on May 12.

Holders also will receive accrued distributions.

In the offers, holders who tender their sukuk are also instructing Citigroup Global Markets Deutschland AG as registrar to appoint proxies to vote in favor of the proposed amendments at the meeting, according to a company announcement.

The tender offers are not conditioned upon the tender of any minimum amount of sukuk.

Sukukholders who do not tender their sukuk for purchase in the tender may receive an early consent amount of 0.4% of par or a final consent amount of 0.2%.

Holders who tender their sukuk in the offer may not receive any additional consent amounts.

The company is also soliciting consents to amend the notes to substitute Sime Darby Plantation Sdn. Bhd. as the new obligor in place of the company and for related changes.

The proposed changes also include a waiver for the occurrence of a “dissolution event” as a result of the proposed reorganization of the businesses of the company, the company noted.

The company will seek approval at a meeting, which requires quorum of two or more sukukholders or agents representing at least 75% of the outstanding sukuk.

To pass, the measures requires a majority consisting of at least three-quarters of the votes cast.

D.F. King Ltd. (+852 3953 7230 / +44 20 7920 9700 or simedarby@dfkingltd.com) is the agent. Hongkong and Shanghai Banking Corp. Ltd. (+852 2822 4100 / +44 20 7992 6237, liability.management@hsbcib.com or https://sites.dfkingltd.com/simedarby) is the dealer manager.

The Kuala Lumpur-based multinational conglomerate is involved in plantations, property, motors, industrial equipment, energy and utilities and health care.

© 2015 Prospect News.
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