Sarawak Consolidated Industries Berhad (“SCIB” or the “Company”) announced today that its indirect wholly-owned subsidiary, SCIB Concrete Manufacturing Sdn. Bhd. (“SCM”), has issued a Notice of Cancellation to Malaysian Industrial Development Finance Berhad (“MIDF”) in respect of the Term Financing-i Facilities of up to RM49.0 million previously approved under the Soft Financing Scheme for Automation and Modernisation.
The cancellation follows SCIB’s earlier announcement dated 2 October 2025 and 18 November 2025 on the proposed disposal of its entire equity interest in SCM to YTL Cement (Sarawak) Sdn. Bhd. (“YTL Cement Sarawak”), a strategic divestment that is expected to unlock significant value for the Company and will place SCIB in a stronger financial position with a net cash balance and lower gearing.
MIDF has acknowledged receipt of the Notice and confirmed that the cancellation is effective from 29 January 2026. As of 3 February 2026, no drawdown or utilisation has been made under the Facilities, and there are no outstanding financial or other obligations arising from the Facilities.
Following the Company’s proposed disposal of its entire equity interest in SCM to YTL Cement Sarawak, the Board has reassessed the Company’s funding requirements and determined that the Facilities are no longer required. As a result, the cancellation reflects the Company’s updated capital and operational structure following the divestment of its manufacturing arm.
Datuk Chong Loong Men, Executive Chairman of SCIB, commented,
“The divestment of our manufacturing arm will significantly strengthen SCIB’s financial position and reduced our reliance on external financing. As a result, the Facilities are no longer necessary. This decision reflects our continued focus on prudent financial management and capital efficiency.”
The Company confirmed that the cancellation will not have any material impact on its gearing, earnings per share, net assets, or shareholding structure for the financial year ended 31 December 2025.
The Board also noted that the cancellation does not give rise to any financial or legal risks, as there are no outstanding obligations to MIDF, and all related conditions and documentation have been rendered null and void.
For more information, visit scib.com.my.
