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.