Sime Darby and MMHE head for arbitration over disputed yard sale

Sime Darby and MMHE head for arbitration over disputed yard sale

Kuala Lumpur: Malaysian conglomerate Sime Darby and shipyard group Malaysia Marine and Heavy Engineering have gone into arbitration over a disputed sale of Sime Darby’s oil and gas business, a controversial deal that has been simmering for the last four years.

The dispute dates back to May 2011 when Sime Darby signed an MoU with Petronas and MMHE over the sale of the Teluk Ramunia fabrication yard to Petronas for RM296m and Pasir Gudang fabrication yard to MMHE for RM399m.

The arbitration proceedings are not expected to have a material impact on the earnings and the net assets of the Sime Darby Group for the financial year ending 30 June 2015, the company said in a release to the Kuala Lumpur stock exchange.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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