By Chester Tay

Sime Darby Bhd. said it is divesting its 30% stake in Tesco Stores (Malaysia) Sdn Bhd for 300 million ringgit ($68.3 million).

Sime Darby said in a stock exchange filing Wednesday that its wholly-owned subsidiaries Sime Darby Allied Products Bhd and Sime Darby Holdings Bhd have entered into conditional agreements with C.P. Retail Development Company Ltd, Tesco Holdings B.V. and Tesco PLC for the stake disposal.

Sime Darby expects an estimated net gain of MYR270 million from the sale of its stake in Tesco Malaysia, a joint venture it has held since 2001.

The proposed stake disposal is expected to be completed in the second half of 2020.

The stake disposal is part of a larger deal between Tesco PLC and Thailand's C.P. Group signed in March 2020, to sell Tesco PLC's businesses in Thailand and Malaysia for an enterprise value of $10.6 billion.

Write to Chester Tay at chester.tay@wsj.com

(END) Dow Jones Newswires

April 22, 2020 06:45 ET (10:45 GMT)

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