Hume Cement divests concrete subsidiary to YTL Cement Sarawak for RM215mil

PETALING JAYA: Hume Cement Industries Bhd has signed a share sale and purchase agreement with YTL Cement Bhd's wholly-owned subsidiary YTL Cement (Sarawak) Sdn Bhd to dispose of its entire equity interest in Hume Concrete Sdn Bhd (HCCT) for a base price of RM215mil.

In a filing with Bursa Malaysia, Hume Cement said the proposed disposal forms part of the group’s ongoing strategic review to sharpen its operational focus.

“The proposed disposal will enable Hume Cement to realise its investment in the concrete segment and divest a non-core business,” it added.

The group added RM148.9mil or 69.2% of the money will be channelled towards investment opportunities and expansion plans, RM63.8mil or 29.7% for working capital and remaining RM2.3mil or 1.1% for estimated disposal expenses.

Hume Cement said the estimated disposal consideration will comprise the base disposal price of RM215mil, minus RM42.5mil redemption sum for its redeemable convertible unsecured loan stocks (RCULS), plus the differential between HCCT’s estimated shareholders’ funds at completion and the shareholders’ funds as at October 2025 of RM21.11mil.

As part of the deal, YTL Cement (Sarawak) will subscribe to 7.39 million new HCCT shares for RM42.5mil immediately upon completion.

HCCT will then use the subscription proceeds to redeem all outstanding RCULS. Hume Cement as the RCULS holder, will receive the RM42.5mil redemption sum.

Upon completion, HCCT will no longer be a wholly-owned subsidiary of Hume Cement.

HCCT, involved in the manufacturing, marketing and sale of concrete and related products, as well as investment holding, was incorporated in 1961 and was formerly listed on the Kuala Lumpur Stock Exchange before its delisting in 2010.

It was subsequently converted into a private company and assumed its current name in 2014.

Hume Cement said HCCT and its subsidiaries own four properties with a combined market value of RM190.6mil, based on valuation certificates dated Nov 26, 2025, issued by independent valuer CBRE WTW Valuation and Advisory Sdn Bhd.

It added that the adjusted consolidated net assets of the HCCT and its subsidiaries stood at RM203.1mil as at June 30, 2025, after accounting for consolidation adjustments and the revaluation surplus from its properties.

YTL Cement (Sarawak), meanwhile, is a wholly-owned subsidiary of YTL Cement, which in turn is 96.11%-owned by YTL Corp Bhd. YTL Cement is acting as the corporate guarantor for the transaction.