Kuala Lumpur, El Sky News – Hume Cement Industries Bhd (HCIB) has officially initiated a major restructuring effort by entering into a conditional sale and purchase agreement to dispose of its entire equity stake in Hume Concrete Sdn Bhd (HCCT). The buyer in this high-profile deal is YTL Cement (Sarawak) Sdn Bhd, with the transaction valued at a base sale price of RM215 million. This strategic move involves HCCT, a company that has been a key player in the production and commercialization of concrete and related construction materials.
The decision to sell HCCT is central to HCIB’s wider business strategy. As disclosed in a recent filing with Bursa Malaysia, the disposal is an outcome of an ongoing strategic review within the group, fundamentally aimed at streamlining its assets and achieving a more concentrated operational focus across its remaining core businesses. This action underscores the company’s commitment to optimizing its portfolio for future growth.
Furthermore, HCIB has been transparent about how the proceeds from the sale will be utilized. A significant portion, amounting to RM148.9 million, has been specifically earmarked for funding new investment opportunities and supporting planned expansion projects. Another RM63.8 million will be allocated directly to strengthening the company’s working capital position, ensuring operational liquidity. The remainder, approximately RM2 million, will be used to cover the necessary administrative and professional expenses associated with the transaction.
The successful completion of the deal is contingent upon obtaining the required approval from HCIB’s shareholders. However, the process has strong internal support, as Hong Leong Manufacturing Group Bhd, which holds a 72.77 per cent majority interest in HCIB, has already provided an irrevocable undertaking to vote in favor of the sale. Adding further assurance to the transaction, YTL Cement Bhd, the ultimate parent company of the Sarawak-based buyer, will act as the corporate guarantor. The parties anticipate that this significant corporate exercise will be finalized by the second quarter of 2026.
