Sime Darby Bhd’s indirect wholly owned unit , Sime Darby Industrial Machinery Australasia Pty Ltd (SDIMA), is in an acquisition bid on a cash free and debt free basis subject to adjustments for working capital, expenditure and stocktake.
SDIMA has signed a share sale agreement or SSA to acquire the entire share capital of Kuxton Pty Ltd and a 98.9 percent capital of Kagera Pty Ltd for A$500 million or RM1.49 billion at the prevailing currency exchange rate.
Kagera is the holding company of a group of companies that operate the South Australian Caterpillar dealership or Cavpower and also owns several properties and interests in joint ventures in Australia.
Cavpower is a Caterpillar Inc (CAT) dealership based in South Australia servicing the mining, construction and energy and transportation industries and the acquisition will be financed through external borrowings and internal funds.
Sime Darby, in a filing with Bursa Malaysia, stated that the acquisition represents an opportunity for geographical expansion of the industrial division to enter the South Australian dealership market.
Sime Darby further stated the acquisition complements the industrial division’s existing dealership footprint while diversifying from coal markets through exposure to large deposits of critical materials such as copper, lithium and cobalt.