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KUALA LUMPUR (May 12): YTL Cement Bhd, a subsidiary of YTL Corp Bhd, today inked an agreement to sell its entire cement and ready-mixed concrete operations in Malaysia to its 76.98%-owned subsidiary Malayan Cement Bhd, for RM5.16 billion in a cash and stock deal.
Under the agreement, Malayan Cement will acquire 12 companies under YTL Cement. All of these companies have an established track record of operational profit, YTL Cement said in a statement.
Of the total consideration, which YTL Cement said is still subject to adjustments at the point of completion, RM2 billion will be settled in cash. Malayan Cement will then issue 375.5 million new shares to YTL Cement to satisfy RM1.41 billion, and issue 466.7 million new irredeemable convertible preference shares (ICPS) for the remaining RM1.75 billion.
Malayan Cement Bhd to repay borrowings with share placement 16 April 2021
Malayan Cement Bhd is expected to raise MYR226.95m (US$55m) mainly to repay bank borrowings via a proposed placement of up to 85m shares, representing 10 per cent of the company s issued shares as of 14 April 2021. The total fund is based on the illustrative issue price of MYR2.67 per placement share, said Malayan Cement.
Malayan Cement said MYR53.93m out of the total proceeds would be used for working capital, MYR170m will be used to repay bank borrowings, and MYR3m to defray estimated expenses relating to the proposed placement.
YTL Corp Bhd s net profit rises to MYR16m 01 March 2021
YTL Corp Bhd’s net profit jumped to MYR16.09m (US$3.9m) in the 2QFY21, ended 31 Dec 2020, from MYR1.29m in the preceding quarter, thanks to a strong showing by its multi-utilities business segment in Singapore. Revenue increased 10 per cent to MYR4.59bn, from MYR4.18bn in 1QFY21.
Group Executive Chairman Tan, Sri Francis Yeoh Sock Ping, said YTL Corp s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at MYR2bn for the six months, as the group remained resilient in the face of COVID-19, supported by the strength of its utilities, cement and construction businesses.