Research houses OSK Research and Kenanga Research are positive over the appointment of Mohd Bakke Salleh as Sime Darby Bhd's designated president and group chief executive officer (CEO) as it has removed one of the many elements of uncertainty.

In its research note, OSK said the market was waiting to see whether Bakke would be able to straighten out Sime Darby and turn it into a respectable company.

Mohd Bakke, 56, currently the CEO of Felda Global Ventures Holdings, has the necessary experience in corporate restructuring exercises as well as management expertise in the plantation and property industries.

He was previously group managing director of Felda Holdings, group managing director and chief executive of Lembaga Tabung Haji and director of Pengurusan Danaharta Bhd's property division.

He has also served in several companies within the Permodalan Nasional Bhd group.

OSK said it was also yet to be seen if the new CEO would be given a free hand to shake up the company, in whatever way necessary, like what Idris Jala did in Malaysia Airlines.

But the fact that the Sime Darby board is yet to meet up with Bakkee has left many questions unanswered.

"What? The board has not met him? We find it highly unusual that Sime's board of directors has yet to meet Bakke as one would think that the appointment of a CEO is the board's prerogative.

"Whoever is appointed should have gone through a series of meetings with the board to ensure that he is the right person for the job," OSK questioned.

In the meantime, forensic investigations are still continuing on the group's loss-making subsidiaries with the results to be made known in August.

As for its shares, OSK maintained a "sell", saying that Sime Darby was substantially overvalued and lacking in focus.

Meanwhile, Kenanga Research in its research note was also positive with the appointment but said great challenges were ahead given the mammoth size and diversified nature of the group.

"Moreover, the appointment of an outsider, we believe, is good as it signals a clear mandate for the new candidate to undertake the necessary to bring the group back to its former glory," it said.

With the forensic audit, legal investigations and conclusion, expected by end-August, it said structural changes in management to promote a culture of ownership and accountability, strengthening of controls and enhancing the board's oversight of the group have been planned.

Kenanga, however, maintains a sell for Sime Darby's share.

Given the lingering uncertainties associated with the group review and the time necessary to revamp the group's work culture and processes, it said share price performance was unlikely to outperform in the near-term.

- Bernama