Proposed Acquisition of Business Assets From Inchcape Australia Limited

For purposes of this announcement, “AU$” refers to Australian Dollars, “RM” refers to Ringgit Malaysia. The exchange rate used for conversion from AU$ to RM is AU$1.0000: RM2.8624, based on the middle rate as at 5.00 p.m. on 10 September 2019 as published by Bank Negara Malaysia.

1.0 Introduction
Sime Darby Berhad (“Sime Darby”) wishes to announce the acquisition of the business assets and properties of three luxury car dealerships in Sydney, Australia (“Purchased Net Assets”) for a consideration of AU$112 million (equivalent to approximately RM321 million (“Consideration”) (“Proposed Acquisition”). The three dealerships represent the BMW, MINI, Volkswagen, Jaguar and Land Rover marques.

The definitive agreements were entered into by Sime Darby’s wholly-owned subsidiaries under Sime Darby Motors Sdn Bhd (“SD Motors”), which in turn is a wholly-owned subsidiary of Sime Darby, and Trivett, the automotive retail unit of Inchcape Australia Limited, on 10 September 2019 (“Agreements”).

2.0 Rationale
The Proposed Acquisition is aligned to SD Motors’ strategy of expanding in the Australian retail luxury segment and will strengthen SD Motors’ presence and brand visibility in Parramatta, which is one of Sydney’s most recognised automotive retail locations.

3.0 Salient Terms of the Agreement

3.1 Consideration

The Consideration was negotiated based on the agreed fair value of the Purchased Net Assets and will be funded by external borrowings. The Purchased Net Assets include all properties, business assets and liabilities that are necessary to operate the car dealerships.

3.2 Conditions

The Agreements are conditional upon terms and conditions typical for a transaction of this nature and size, including written consents from the Foreign Investment Review Board of Australia as well as the brand principals.

3.3 Expected completion
The Proposed Acquisition is expected to be completed by early December 2019.

4.0 Interest of Directors, Major Shareholders and/or Persons Connected With Them
None of the Directors, major shareholders of Sime Darby and/or persons connected with them have any interest, direct or indirect in the Proposed Acquisition.

This announcement is dated 11 September 2019

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