Moody's, Fitch reaffirm Sime Darby credit ratings

Kuala Lumpur

TWO international rating agencies - Moody's Credit Outlook and Fitch - have reaffirmed the credit ratings of Malaysian multinational Sime Darby following its proposed acquisition of Papua New Guinea-based New Britain Palm Oil Ltd (NBPOL).

On Oct 9, Sime told a press conference that it was making a general offer for all of NBPOL shares, offering £7.15 a share for the London-listed firm for a total consideration of £1.07 billion (S$2.18 billion). At the time, NBPOL shares were trading well below £3 each, leading to minority shareholder unease that Sime might have offered more than it should. Indeed, the announcement sent NBPOL shares rocketing up to £6.62 apiece.