YTL Cement to consolidate Malaysian cement businesses

YTL Cement (YTL Corp) has signed an agreement to sell its entire cement and RMC operations in Malaysia to its 76.98 per cent subsidiary Malayan Cement for a MYR5.16bn (US$1.25bn) cash and stock deal.

The deal will see Malayan Cement acquire 12 companies from YTL Cement. YTL Cement’s shareholding in Malayan Cement is expected to increase to approximately 78.58 per cent upon completion of the agreement and the ongoing private placement of up to 85m new Malayan Cement shares.

"YTL Cement will consolidate similar operating businesses under a singular umbrella," it said, adding the deal is expected to further improve operational efficiencies and business outcomes by leveraging shared expertise, experience and resources, and eliminate overlapping functions, according to the company.