YTL Cement buys stake in Perak-Hanjoong for RM200m

PETALING JAYA: YTL Cement Bhd is acquiring a 35.16% equity interest in Perak-Hanjoong Simen Sdn Bhd for RM200mil cash.

It told Bursa Malaysia that Gopeng Bhd had yesterday accepted the company's offer to purchase all the 117.742 million sale shares in Perak-Hanjoong.

A formal sale and purchase agreement will be entered into in due course, it added.

YTL Cement, together with its wholly-owned subsidiary, currently holds a 64.84% equity interest in Perak-Hanjoong.

The acquisition will enable YTL Cement to have full ownership of Perak-Hanjoong and fully integrate the operations of Perak-Hanjoong. This will further allow YTL Cement to have full control on the business direction of Perak-Hanjoong, it said.

Perak-Hanjoong is the second largest integrated cement producer in the country. Operating two plants in Padang Rengas, Perak, it has a capacity of 3 million tonnes per year for clinker and 3.4 million tonnes per annum for cement, both of which are for the local and export markets.

Perak-Hanjoong also has a cement depot and packing plant near Batu Caves in Selangor, with an annual capacity of 600,000 tonnes.

Gopeng has undertaken to deliver an irrevocable and unconditional undertaking to YTL Cement by two largest shareholders of Gopeng Datuk Mohd Salleh Hashim and Fortuna Gembira Enterpris Sdn Bhd confirming that they will vote in favour of the shareholders' resolution for the disposal of the sale shares to YTL Cement, the statement said.

There are no liabilities, including contingent liabilities and guarantees to be assumed by YTL Cement arising from the acquisition other than the purchase consideration for the shares and liabilities incurred by Perak-Hanjoong in the ordinary course of business.

The acquisition is expected to contribute positively towards the earnings of the group for the current financial year ending June 30, YTL Cement said.

The purchase, to be settled through internally generated funds, is subject to the approval of relevant government body or regulatory authorities, if required.

Meanwhile, Gopeng said in a filing with Bursa Malaysia that the proposed disposal was subject to the approval of the shareholders of the company and any other relevant regulatory authorities/parties.

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