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UPDATE 1-Sime Darby seeks $500 mln by listing automobile unit-sources

(Adds company comment, details)

KUALA LUMPUR, July 4 (Reuters) - Malaysia's Sime Darby Bhd , the world's top oil palm planter by landbank size, is seeking to raise about $500 million by listing its automobile unit as early as this year, people familiar with the matter said on Friday.

Sime Darby has invited banks to make a pitch to win the IPO mandate, they added. The plantations-to-motoring conglomerate had earlier flagged possible listings of some units to improve valuations.

Analysts have previously said Sime needs a big overhaul, including possibly listing its prized plantations business and spinning off its motor unit, to boost valuations and compete better with fast-growing rivals.

"Sime Darby Bhd constantly monitors and evaluates all available opportunities that will enhance shareholder value. A stock market listing is just one of the many potential exercises that the company will consider towards this purpose," the company said in a statement.

The company will make appropriate announcements as required by the Stock Exchange at material times, it added.

The people declined to be identified as they were not authorised speak to the media. (Reporting By Anuradha Raghu and Ngui Yantoultra; Editing by Denny Thomas and Michael Urquhart)