The Malaysian Oil Palm Company, Sime Darby has confirmed selling its Liberia share to Mano palm oil industries (MPOI), a report on its website said.
This confirmation comes few months after the international oil palm company, which operates in Bomi and Grand Cape Mount Counties in Western Liberia, laid off hundreds of workers.
According to the website, the selling of the company was approved by the group’s board of directors and the Government of Liberia who has also consented to the divestment of Sime Darby shares to MPOI.
Sime Darby oil palm plantation website disclosed that the decision is part of the plantation’s current asset monetization exercise, which includes the divestment of underperforming assets or assets that have achieved its full value potential for disposal which was said in a bourse filing recently.
Furthermore, it was confirming a Reuters report on December 6, 2019 quoting a Liberia government Minister of saying Sime Darby plantation would be selling it Liberian operations to Mano Manufacturing company of which MPOI is a subsidiary, the Sime Derby press release said.
Sime Darby plantation also added that it is currently working together with MPOI in finalizing the terms and conditions of this divestment exercise via sale and purchase agreement which is targeted to be signed by the end of 2019, with completion of the transaction in the first quarter of next year. The company said, any further details and updates on this divestment exercise will be announced in due course.
Sime Darby plantation had been reviewing its Liberia operations which consists of a 63-year concession signed in 2009 for 220,000 hectares of land in north western Liberia constituting of fifth of its global land holdings. It can be recalled in August this year the company due to financial and economic constraints, the company lay off 350 employees.
The turning over ceremony is yet to be done. Report by Garmah Never Lomo,garmahlomo@gmail.com