KUALA LUMPUR (Oct 2): Sarawak Consolidated Industries Bhd (KL:SCIB) said YTL Cement (Sarawak) has offered to buy its subsidiary, SCIB Concrete Manufacturing, for RM113 million. This offer is almost equal to SCIB’s total market value of RM115.4 million.

SCIB Concrete Manufacturing is involved in the trading of construction materials, and the making and selling of concrete products like precast pipes and spun piles.

In a press statement, SCIB said that following internal deliberations, its board of directors has resolved to accept the offer in principle, subject to conditions including the successful negotiation and execution of a definitive share sale and purchase agreement.

Executive chairman Datuk Chong Loong Men described the offer as a potential opportunity to unlock value from one of the group’s core business units. “While we have accepted the offer in principle, it is still early in the process. We will proceed carefully, guided by our appointed professionals and evaluate the proposal in its entirety before making a final decision,” he said.

Chong added that SCIB remains open to strategic opportunities that best serve the company and its stakeholders.

YTL Cement (Sarawak) is a wholly-owned subsidiary of YTL Cement Bhd, which is 98.03%-controlled by YTL Corporation Bhd (KL:YTL).

At the time of writing, YTL Corporation has not made any filing with Bursa Malaysia regarding the proposed acquisition.

SCIB said it will appoint legal, financial and strategic advisers to ensure a thorough evaluation of the proposed transaction in line with corporate governance standards. The deal remains subject to shareholder approval, with further details to be announced in due course.

The company said it will share updates once the final agreement is signed or if anything important arises. SCIB also promised to stay transparent and protect the interests of its shareholders, employees, customers and partners.

As of Thursday’s close, SCIB shares rose 13.8% or two sen to 16.5 sen, valuing the company at RM115.4 million. Despite the rebound, the stock is still down about 30% this year.

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