Sime Darby to defer motor business IPO

[KUALA LUMPUR] Malaysian conglomerate Sime Darby Bhd will delay the initial public offering of its auto business to the second half of this year, Chief Executive Bakke Salleh said on Thursday. "The market right now is not conducive," Mr Bakke told reporters after the company posted a 47 per cent drop in its second-quarter net profit.

The company had initially planned to launch the IPO in the middle of the year. Bankers say the deal could raise about US$500 million.

The autos division operates in six countries including China and Australia, distributing mostly high-end brands such as Jaguar and Ferrari. It accounted for nearly 37 per cent of Sime Darby's group revenue in the financial year that ended June 30.

REUTERS