KUALA LUMPUR: Sarawak Consolidated Industries Bhd
(SCIB) has completed the RM113mil disposal of SCIB Concrete Manufacturing Sdn Bhd (SCM).
In a statement, the construction and engineering, procurement, construction and commissioning (EPCC) specialist said the disposal will allow it to focus on its construction and EPCC segment, while reassessing its capital raising plans.
Following the completion of the disposal, SCM will cease to be a subsidiary of the company.
As a result, SCIB said it will reassess the group’s operating structure and funding requirements to align with its post-disposal business direction.
In line with this, SCIB said it will not proceed with the proposed rights issue with warrants under the current scheme.
The group noted that a substantial portion of the proceeds had originally been earmarked for the construction of factory facilities and the purchase of machinery for SCM’s manufacturing business, which is no longer relevant following the disposal.
Executive chairman Chong Loong Men said the completion of the SCM disposal marks an important milestone for SCIB as it concludes a major component of the group’s corporate realignment exercise.
He said the exercise would unlock value from SCIB’s manufacturing business and landbank, while strengthening its financial position to pursue larger opportunities in the construction and EPCC space.
“With SCM no longer forming part of the company moving forward, it is only prudent that we reassess our funding requirements and capital plans based on the company’s revised business structure.
“Our priority is to ensure that any future capital exercise is properly aligned with SCIB’s operational needs, financial position and long-term strategic direction,” Chong said.
SCIB may consider a revised rights issue with warrants and submit a fresh application to Bursa Malaysia later, subject to the group’s funding requirements. Shareholders’ approval will be sought if the revised scheme proceeds.
Meanwhile, SCIB has also appointed Ben Huang Vui Bing as its new chief operating officer.
He has over 13 years of experience in civil and structural engineering, project execution and construction management.
As COO, he will oversee operational execution, project delivery and construction management as SCIB sharpens its focus on its core construction and EPCC segment.
