KUALA LUMPUR: Sarawak Consolidated Industries Bhd's (SCIB) unit SCIB Holdings Sdn Bhd has signed a conditional share sale and purchase agreement with YTL Cement (Sarawak) Sdn Bhd for the disposal of its entire stake in SCIB Concrete Manufacturing Sdn Bhd (SCM) for RM113 million.

SCIB said the offer is in line with the indicative proposal received from YTL Cement Sarawak on Oct 2.

The deal covers the sale of 18.58 million SCM shares, representing 100 per cent equity interest, to be transferred free of encumbrances with full rights and entitlements intact.

The transaction will require shareholder approval at an upcoming extraordinary general meeting.

SCIB said the sale price represents a 14.77 per cent premium to SCM's unaudited net assets of RM98.46 million as at June 30, 2025, and a 26.91 per cent premium to its audited net assets of RM89.04 million as at June 30, 2024.

The disposal is expected to generate a gain of RM11.29 million, which the company said will strengthen its net assets and near-term earnings.

SCIB executive chairman Datuk Chong Loong Men said the divestment unlocks significant value for it and will place it in a stronger financial position with a net cash balance and lower gearing.

SCIB will channel the proceeds primarily toward funding ongoing and future construction and EPCC projects, supporting working capital needs, and strengthening the group's operational capacity.

The company said its construction and EPCC segment continue to see encouraging opportunities, driven by public infrastructure development and state-led economic initiatives.

As a Sarawak-based player with established capabilities, SCIB said it is well positioned to participate in the upcoming projects.