KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) announced on Tuesday that its indirect wholly-owned subsidiary, SCIB Concrete Manufacturing Sdn Bhd (SCM), has issued a notice of cancellation to Malaysian Industrial Development Finance Bhd (MIDF).
The notice covers Term Financing-i Facilities of up to RM49.0 million, previously approved under the Soft Financing Scheme for Automation and Modernisation, SCIB said in a statement.
The cancellation follows SCIB’s announcements on October 2, 2025 and November 18, 2025, regarding the proposed disposal of its entire equity interest in SCM to YTL Cement (Sarawak) Sdn Bhd.
The divestment is expected to unlock significant value for the company and strengthen SCIB’s financial position, providing a net cash balance and lower gearing.
“MIDF has acknowledged receipt of the notice and confirmed that the cancellation is effective from January 29, 2026. As of February 3, 2026, no drawdown or utilisation has been made under the facilities, and there are no outstanding financial or other obligations arising from the facilities,” it added.
Following the proposed disposal of SCM, SCIB’s board reassessed the group’s funding requirements and determined that the facilities are no longer necessary.
The cancellation reflects the company’s updated capital and operational structure after divesting its manufacturing arm.
SCIB’s Executive Chairman, Datuk Chong Loong Men, said the divestment will significantly strengthen the group’s financial position and reduce reliance on external financing.
“The decision reflects our continued focus on prudent financial management and capital efficiency,” he added. – BERNAMA
