ASX-listed Sims slips on divesting stake in renewable energy firm

Sims

06/03/2023 04:15

** Shares of Sims Ltd  SGM.AX  drop as much as 2% to A$15.78
    ** If losses hold, this would be co's biggest intraday drop
since Feb. 27
    ** Metals and electronics recycling firm announces sale of
its 50% stake in LMS Energy, Australian biogas-to-energy
facilities operator
    ** Divestment follows a strategic review but no financial
details disclosed
    ** RBC says LMS Energy is a high-quality business but deemed
non-core
    ** Broker believes LMS struggled amid highly competitive
nature of U.S. and European markets that resulted in
lower-than-expected rates of return
    ** Broker remains "outperform" rated on stock and has a
price target of A$18.25
    ** As of last close SGM up ~23%, YTD


($1 = 1.4663 Australian dollars)

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.Mishra@thomsonreuters.com))