SIME ... Jul10

PNB has pared down its stake in the country’s largest conglomerate Sime Darby Bhd with the disposal of more than 47 million shares resulting in its direct interest being lowered to 13.87%.

PNB disposed of 5.5 million shares on July 9 2010 to reduce its stake in the conglomerate from 838.90 million shares or 13.96% to 833.40 million shares or 13.87%. Data services indicated that the shares were sold off-market in a number of tranches with prices ranging from RM7.69 to RM7.80 per share.

According to Sime’s July 13 filing, PNB had disposed of 19 million shares on July 7 2010 and a further eight million shares the following day to reduce its stake from 865.90 million shares or 14.41% to 838.90 million shares or 13.96%. The two blocs of shares were sold off-market at RM7.50 per share and drawing a total value of RM202.5 million.

PNB’s shareholding in Sime has gradually been reduced since early July 2010. It had disposed of over 15 million Sime shares on July 1, 2, July 5 and 6 2010.

An institutional investor could have picked up the big chunk of the shares sold by PNB as Sime remained financially strong with contributions from its plantation, industrial, property and motor sectors at satisfactory levels.

Due to provisions to the tune of RM964 million, Sime posted a net loss of RM308.63 million in its third quarter ended March 31, 2010 (3QFY10) versus a net profit of RM150.57 million a year earlier. Its net asset per share stood at RM3.49 as at March 31 2010.

Sime’s recent losses would not impact its 50% dividend payout policy.