KUALA LUMPUR: Fitch Ratings has revised the outlook on Malaysia-based conglomerate Sime Darby Bhd to stable from negative. This follows Sime Darby's announcement of a successful share placement, proceeds from which will help the company lower its leverage. Higher cash flows from the plantation business will also support deleveraging at Sime Darby, it added. Sime Darby proposes to use around 50 per cent of the placement proceeds to repay debt, and the rest of the proceeds to fund capex and working capital. Permodalan Nasional Berhad (PNB) will continue to be Sime Darby's largest shareholder with a stake of approximately 53 per cent after the share placement.

Source: New Strait Times October 11, 2016 08:03 UTC