Dividend Reinvestment Plan by Sime Darby Berhad

If you are one of the shareholders of the Sime Darby Berhad, you should have received the Dividend Reinvestment Plan(DRP) form offered by the company.

DRP is a scheme where instead of receiving dividends in the form of cash, the company offer the same  value of their shares at prescribed price.

Dividend Reinvestment Plan 2

For example, Mr. Alex have 1,000 units of  Sime Darby Berhad’s share and will be receiving cash dividend of RM300. (Please refer to the Notice Of Book Closure below for more information). 

Instead of receiving the full dividend of RM300, he can opt for 33 unit of Sime Darby Berhad’s share.

RM300/RM8.94= 33.56 = 33 shares

Assuming, Mr.Alex opt for the full 33 shares that is available for him in this DRP, the balance dividend of RM4.98, will be paid in cash.

RM300 – (RM8.94 X 33 shares) = 300 – 295.02 = RM4.98

At the end of this DRP exercise, he’ll owned 1,033 units of  Sime Darby Berhad’s share and receiving cash dividend of RM4.98.

Sime Darby price chart

The closing stock price of Sime Darby on 19 December 2014 was RM8.96 compare to DRP price of RM8.94. It seem it’s cheaper to get the cash dividend and then buy more shares in the Bursa Malaysia.

Personally, I feel it’s not easy to Time the market. So I’ll opt for this DRP and let the magic of Power of Compounding to work for me.

Unlike other most other company like Maybank’s DRP etc, Sime Darby will absorb the RM10 Malaysian Revenue Stamp. This is a very wise moves to encourage more minorities shareholders to opt for this DRP.

Sime Darby Corporate Video

Sime Darby was incorporated in 1910 by businessmen William Sime, Henry d’Esterre Darby and Herbert Mitford Darby to manage 500 acres of rubber estates in Malacca, Malaysia. From such humble beginnings, Sime Darby has grown into one of Malaysia’s biggest multinational corporations.

Today, Sime Darby is a key player in the Malaysian economy as well as a diversified multinational, with businesses in key growth sectors namely, plantations, property, motors, industrial equipment, energy & utilities and healthcare, with operations in more than 20 countries.

Sime Darby is one of the largest companies listed on Bursa Malaysia and has a market capitalisation of more than RM55 billion (USD17.98 billion).

Sime Darby recognises the importance of balancing economic performance with social responsibility. Committed to developing a sustainable future, Sime Darby strives to maintain an equitable balance between increasing value for shareholders and being responsible to society and the environment.





Final cash dividend of 30 sen per ordinary share of RM0.50 each in Sime Darby Berhad (Sime Darby) (Sime Darby Share) for the financial year ended 30 June 2014.

Kindly be advised of the following :
1) The above Company’s securities will be traded and quoted [ "Ex – Dividend" ] as from : [ 8 December 2014 ]

2) The last date of lodgement : [ 10 December 2014 ]

3) Date Payable : [ 5 January 2015 ] Remarks;

On 29 August 2014, the Board of Directors of Sime Darby Berhad (Board of Sime Darby) announced its consolidated results for the financial period ended 30 June 2014, wherein the Board of Sime Darby proposed a final cash dividend of 30 sen per Sime Darby Share held for the financial year ended 30 June 2014 (Final Dividend). The Board of Sime Darby had also determined that the dividend reinvestment plan will apply to the entire Final Dividend (2nd DRP) and shareholders of Sime Darby be given an option to reinvest their Final Dividend in the new Sime Darby Shares to be issued pursuant to the 2nd DRP (New Shares)

On behalf of the Board of Sime Darby, Maybank Investment Bank Berhad has, on even date, announced that the issue price of the New Shares has been fixed at RM8.94 per New Share.

Source: Bursa Malaysia

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