Sarawak Consolidated Industries Bhd (SCIB) has announced that wholly owned subsidiary SCIB Holdings Sdn Bhd will divest its entire stake in SCIB Concrete Manufacturing Sdn Bhd (SCM) for MYR113 million (US$24.1m). The sale, to YTL Cement Sarawak Sdn Bhd, involves 18.58 million ordinary shares and is conditional on shareholder approval.
The disposal price represents a 14.77 per cent premium over SCM’s unaudited net assets of MYR98.46m as of 30 June, and a 26.91 per cent premium over audited net assets of MYR89.04m a year earlier. SCIB expects to record a gain of RM11.29m from the transaction.
Executive Chairman Datuk Chong Loong Men described the move as a major step in reshaping the group’s portfolio. “The divestment of our manufacturing arm unlocks significant value for the company and will place SCIB in a stronger financial position with a net cash balance and lower gearing,” he said.
Proceeds from the sale will be directed toward strengthening SCIB’s construction and EPCC (engineering, procurement, construction and commissioning) division, as well as working capital needs and operational capacity.
The transaction marks a strategic shift for SCIB as it sharpens its focus on core construction activities amid evolving market conditions within Malaysia’s building materials and infrastructure sectors.
