KUCHING: Sarawak Consolidated Industries Bhd’s (SCIB) board of directors views the proposed disposal of indirect wholly-owned subsidiary SCIB Concrete Manufacturing Sdn Bhd (SCM) for RM113 million as “justifiable” based on the valuation of independent valuer, BDO Capital Consultants Sdn Bhd (BDOCC).
On November 18, 2025, SCIB and SCIB Holdings Sdn Bhd entered into a conditional share sale and purchase agreement (SSPA) with YTL Cement (Sarawak) Sdn Bhd for the proposed disposal of the entire equity interest in SCM for an indicative total cash consideration of RM113 million.
The RM113-million price tag represents a premium of RM14.54 million (14.77%) to the latest audited net assets of SCM as of June 30, 2025, of RM98.46 million, and a premium of RM23.96 million (26.91%) to the audited net assets of SCM as of June 30, 2024, of RM89.04 million.
Following the signing of the SSPA, SCIB appointed BDOCC to undertake a valuation of the entire equity interest in SCB.
BDOCC has valued SCM’s entire equity interest in the range of RM101.1 million to RM120.6 million, SCIB said in a filing with Bursa Malaysia.
BDOCC has adopted the discounted cash flow (DCF) method of valuation using the financial projections of SCM from October 1, 2025, to December 31, 2030, together with the underlying bases and assumptions.
The valuation exercise took into account the amount due to SCM of RM39.6 million, comprising RM24.6 million from SCIB, RM14.8 million from SCIB Industrialised Building System Sdn Bhd, and RM0.1 million from both SCIB Properties Sdn Bhd and SCIB LW System (Sdn Bhd) while the amount due to SCIB Industrialised Building System was RM16.1 million (based on the actual amount invoiced by SCIB Industrialised Building System on December 30, 2025, for the construction works of the new factory) and SCIB Buildings Solutions Sdn Bhd (RM6.4 million) for a total of RM22.5 million.
The net amount to SCM due from related and holding companies is, therefore, at RM17.1 million.
Premised on this, SCIB board of directors is of the view that the disposal consideration of SCM for RM113 million is justifiable, said the company.
