Maybank IB Remains Positive On Sime Darby's Saizen Reit Reverse Takeover

KUALA LUMPUR, Sept 12 (Bernama) -- Maybank Investment Bank Research (Maybank IB) remains long-term positive on Sime Darby Bhd's reverse takeover of Saizen REIT (SR) via its Australian assets. The exercise is set to be done through the sale-and-leaseback of 20 industrial properties in Australia for A$55.8 million (RM1.12 billion) cash. The research house, in a note, said it had also maintained its earnings forecast on the conglomerate. "Besides monetising the Australian properties and deleveraging its balance sheet, the acquisition of SR is in line with Sime Darby's corporate strategy to develop a REIT platform to generate stable recurring income stream. "With this platform, Sime Darby has greater flexibility in future fund-raising exercises to build a sizeable international portfolio of assets," Maybank IB said. As at 10.30 am, Sime Darby's shares slipped three sen to RM7.80 with 159,600 changing hands. The research house has placed a "hold" recommendation on Sime Darby and kept its target price at RM7.56 per share. (US$1 = RM4.18) -- BERNAMA