Maybank and UOB Malaysia Jointly Underwrite RM2bil Islamic Facility

Landmark transaction paves way for consolidation of YTL Cement’s cement and ready- mixed concrete businesses in Malaysia under Malayan Cement Berhad’s acquisition exercise

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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 Berhad (image courtesy of YTL Cement)

Maybank Investment Bank and UOB Malaysia have announced that they have been appointed as the underwriters and the bookrunners, on an equal basis, for RM2 billion Islamic facility granted to Malayan Cement Berhad (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 Berhad (YTL Cement). 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.

Fad’l Mohamed, Chief Executive Officer, Maybank Investment Bank, said, “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.”

Ng Wei Wei, Deputy Chief Executive Officer, UOB Malaysia, said, “We are honoured to support MCB’s funding requirements for this landmark acquisition. As the Mandated Lead Arranger, Bookrunner and Underwriter for this transaction, we tapped our Islamic financing capabilities to help MCB realise its growth ambitions. This deal also comes on the back of our Best New Sukuk (Corporate) and Best Securitisation in Malaysia awards at The Asset Triple A Islamic Finance Awards in August 2021, a testament to our Islamic financing capabilities and commitment to meeting our clients’ financial needs.”

Dato’ Sri Michael Yeoh Sock Siong, Managing Director of YTL Cement and MCB said, “This acquisition exercise by  MCB  will allow us to streamline and improve our operational efficiencies as we leverage 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. We are pleased to have arrived at this major milestone, which will bring us forward to materialising our growth plans for MCB. We thank Maybank Investment Bank and UOB Malaysia for being our partners as we enter this new phase in our corporate journey.”

MCB (formerly known as Lafarge Malaysia Berhad) is listed on the Main Market of Bursa Malaysia. The principal activities of MCB are those of an investment holding company. 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.