SCIB cancels RM49 mln MIDF financing after SCM divestment

KUCHING (Feb 4): Sarawak Consolidated Industries Bhd (SCIB) has cancelled a Term Financing-i facility of up to RM49 million previously approved by Malaysian Industrial Development Finance Bhd (MIDF) under the Soft Financing Scheme for Automation and Modernisation.

SCIB in a statement on Tuesday said the facility was granted to SCIB Concrete Manufacturing Sdn Bhd (SCM), its indirect wholly owned.

The cancellation follows SCIB’s earlier announcements on Oct 2 and Nov 18, 2025 regarding the proposed disposal of its entire equity interest in SCM to YTL Cement (Sarawak) Sdn Bhd.

To recap, SCIB’s unit SCIB Holdings Sdn Bhd had on Nov 18, 2025 signed a conditional share sale and purchase agreement with YTL Cement (Sarawak) Sdn Bhd for the disposal of its entire stake in SCM for RM113 million. 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 said MIDF has acknowledged the Notice of Cancellation and confirmed that the cancellation took effect on Jan 29, 2026.

As at Feb 3, 2026, SCIB said there had been no drawdown or utilisation of the facility, and no financial or other obligations remain outstanding.

The company said the decision was made after reassessing its funding needs following the proposed divestment of SCM, which will remove the need for capital expenditure originally intended to be funded by the facility.

“As a result, the cancellation reflects the company’s updated capital and operational structure following the divestment of its manufacturing arm,” it said.

SCIB executive chairman Datuk Chong Loong Men said the disposal of the manufacturing arm is expected to strengthen the group’s financial position and reduce reliance on external financing.

“As a result, the facilities are no longer necessary. This decision reflects our focus on prudent financial management and capital efficiency,” he said.

The company said the cancellation will not have any material impact on gearing, earnings per share, net assets or its shareholding structure for the financial year ended Dec 31, 2025.

It added that there are no financial or legal risks arising from the cancellation, as all related conditions and documentation have been rendered null and void.