KUALA LUMPUR, Sarawak Consolidated Industries Bhd has confirmed that it has received an offer of RM113 million from YTL Cement (Sarawak) Sdn Bhd to acquire its wholly-owned subsidiary, SCIB Concrete Manufacturing Sdn Bhd. The proposed deal is notable as the offer value is nearly on par with SCIB’s current market capitalisation of RM115.4 million.
SCIB Concrete Manufacturing operates in the construction supply chain, focusing on the trading of building materials as well as the production and sale of concrete products including precast pipes and spun piles.
In a statement, SCIB said its board has resolved to accept the proposal in principle, subject to the successful conclusion of negotiations and the signing of a definitive share sale and purchase agreement.
Executive chairman Datuk Chong Loong Men said the move could unlock significant value from one of the group’s core business units. “This proposal provides a strategic opportunity for the group. While we have agreed in principle, we remain in the preliminary stages and will move cautiously, working closely with our appointed advisers to review every aspect before reaching a final decision,” he noted.
Chong further emphasised that SCIB will continue to evaluate strategic opportunities that support long-term growth and serve the interests of shareholders and stakeholders.
YTL Cement (Sarawak) is a wholly-owned subsidiary of YTL Cement Bhd, which itself is 98.03%-owned by YTL Corporation Bhd. At the time of writing, YTL Corporation has not issued any official statement to Bursa Malaysia regarding the planned acquisition.
SCIB said it intends to appoint financial, legal and strategic advisers to conduct a comprehensive review of the offer and ensure the process aligns with governance and compliance standards. The proposed transaction will also be subject to shareholder approval.
The group added that it will keep the market informed of any material developments, including the signing of the final agreement or changes to the proposed deal, while reiterating its commitment to transparency and protecting the interests of its employees, customers, partners and investors.
On Thursday, SCIB’s share price rose 13.8% or two sen to close at 16.5 sen, giving the group a market value of RM115.4 million. Despite the rebound, the counter remains down about 30% year to date.
