KUALA LUMPUR: Maybank Investment Bank and United Overseas Bank (Malaysia) Bhd (UOB Malaysia) have been appointed as the underwriters and bookrunners, on an equal basis, for a RM2.0 billion Islamic facility granted to Malayan Cement Bhd (MCB).
The facility will fund MCB’s acquisition of 10 companies in the cement and ready-mixed concrete sector in Malaysia from its parent company, YTL Cement Bhd, the banks said in a joint statement today.
The Islamic syndicated term financing facility is based on the Shariah principles of Commodity Murabahah.
MCB will use the Islamic facility to finance the cash consideration for the acquisition of the entire equity interest of the 10 companies and their respective subsidiaries (Acquiree Companies) from YTL Cement for a total consideration estimated at RM5.2 billion.
“We would like to thank MCB for the trust given to Maybank to support this landmark transaction as mandated lead arranger, bookrunner and underwriter for the Islamic financing solution as well as sole principal adviser for the acquisition exercise and shariah adviser for the Islamic facility.
“We look forward to further collaboration as MCB continues its transformative journey as one of the
pioneers of the local building materials industry,” said Maybank Investment Bank chief executive officer (CEO) Fad’l Mohamed.
UOB Malaysia deputy CEO Ng Wei Wei said as the mandated lead arranger, bookrunner and underwriter for this transaction, UOB tapped its Islamic financing capabilities to help MCB realise its growth ambitions.
Meanwhile, YTL Cement and MCB managing director Datuk Seri Michael Yeoh Sock Siong said the acquisition exercise will allow the group to streamline and improve its operational efficiencies as it leverages each other’s resources, expertise and experience.
“This consolidation will help us achieve economies of scale, enhance market presence, reduce duplicated functions and ultimately, provide seamless solutions to our customers,” he said.
MCB (formerly known as Lafarge Malaysia Bhd) is listed on the Main Market of Bursa Malaysia.
Through its subsidiaries, MCB is involved in the production, manufacturing and trading of cement, clinker, ready-mix concrete and other building materials and related products.