KUALA LUMPUR: YTL Cement Bhd has entered into an unconditional share sale agreement with Associated International Cement Ltd to acquire 433.34 million ordinary shares -- approximately 51 per cent of Lafarge Malaysia Bhd -- for a total cash consideration of RM1.63 billion.
Consequently, YTL Cement has extended a mandatory take-over offer to acquire the remaining Lafarge Malaysia's shares in accordance with the Malaysian Code on Take-Overs and Mergers 2016, the company said in a statement today.
“The mandatory take-over offer will be undertaken at a cash offer price of RM3.75 for each ordinary share in Lafarge Malaysia, representing a premium of approximately 19 per cent to the five-day volume weighted average share price of RM3.15,” it said.
Managing director Datuk Seri Michael Yeoh Sock Siong said the acquisition represents an opportunity for the group to bolster its position, enhance its ability to offer customers the full range of cement products and maximise economies of scale to improve cost efficiencies.
It will also enable the group to further develop research and development (R&D) capabilities to innovate and expand the group’s range of cementitious product offerings.
“Lafarge Malaysia is a strategic fit to YTL Cement group’s business and we fully expect the successful integration of our operations will strengthen our ability to fulfil the group’s regional growth aspirations, drive the expansion of our export markets and continue to develop our intellectual capital and R&D capability,” he said.
The company said the acquisition is expected to complement the group’s existing core business activities and deliver synergies, including operational efficiencies in logistics, distribution and procurement, as well as cost synergies realised from economies of scale, reduction or elimination of duplicated functions and consolidation of corporate overheads.