YTL Cement Bhd has received the Securities Commission (SC) approval to acquire the remaining 50% stake in Pahang Cement Sdn Bhd not already owned by the company.
“The acquisition is expected to generate opportunities for the group to further enhance its future earnings through the consolidation of revenue and earnings of Pahang Cement as a wholly-owned subsidiary,'' YTL Cement said in a statement.
Pahang Cement, which began operations in May 1998, has the capacity to produce 1.2 million tonnes of portland cement per annum. The company was established in 1995 as a 50:50 joint venture between the Pahang government and YTL Cement.
On Sept 12 last year, YTL Cement had entered into a sale and purchase agreement with Perbadanan Setiausaha Kerajaan Pahang and Pasdec Corp Sdn Bhd for the acquisition of Pahang Cement at a purchase price of RM138mil, to be satisfied via the issuance of 36.8 million new YTL Cement shares at RM3.75 per share.
The SC, via its letter dated Jan 19, had also given approval for the listing of the new shares. YTL Cement received the green light for the acquisition from shareholders on Dec 4, 2003.
The proposed acquisition is now pending approvals from the International Trade and Industry Ministry and the MSEB.
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