Investment to pay off

 By Eric Balaria

Malaysian conglomerate Sime Darby said its acquisition of New Britain Palm Oil Ltd (NBPOL) will double the company’s earnings in a year.

Sime Darby has announced it will pay £1.07 billion (K4.23bn) for 98.8 per cent of NBPOL shares. 

President and group chief executive Mohd Bakke Salleh (pictured) said the price of £1.07 billion offered for NBPOL shares was fair to Sime Darby.

Salleh said: “I think the impact or the earnings for Sime Darby would be two 

for one, if the additional profit that we can recognise from the earnings from NBPOL.”

Salleh said there was a huge potential that would come about from the integration of the two companies.

However, he said there were risks that were considered with the operations of NBPOL.

“The risks we are looking at would be in the context of the business we are in,” he said.

“All plantation companies had to go through the commodities price cycle where there is volatility of the prices of the commodities.

“It is very much a business that is related to weather patterns.”

Salleh said however they were confident with their investment here in the country, especially with the support of the PNG Government.

“Apart from that in terms of investment and climate here, we were very much attracted to the business friendly policies of the PNG Government,” he said.

“And these have been reflected in the sound macro-economic policies of the government over the past few years.

“We are going to work closely with the PNG Government to grow this business and NBPOL globally.”