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KUALA LUMPUR (Feb 4): Sarawak Consolidated Industries Bhd (KL:SCIB) has cancelled its RM49 million financing facilities after the board determined that the facilities were no longer required following the group’s disposal of its indirect wholly owned unit SCIB Concrete Manufacturing Sdn Bhd (SCM).
SCIB said in a filing with Bursa Malaysia on Tuesday that SCM has notified Malaysian Industrial Development Finance Bhd of the cancellation, and no financial or legal obligations remain.
The group noted that the cancellation follows its proposed divestment of SCM to YTL Cement (Sarawak) Sdn Bhd, an indirect subsidiary of YTL Corporation Bhd (KL:YTL), under a RM113 million deal announced in November 2025.
The disposal forms part of SCIB’s shift to streamline operations and focus on its construction and engineering, procurement, construction and commissioning (EPCC) business.
SCIB previously said the disposal was expected to generate a gain of RM11.29 million, which is expected to strengthen the group’s financial position.
Executive chairman Datuk Chong Loong Men said the divestment of the group's manufacturing arm significantly improves SCIB’s balance sheet and reduces reliance on external financing.
"As a result, the facilities are no longer necessary. This decision reflects our continued focus on prudent financial management and capital efficiency," he said in a separate statement.
On Tuesday, SCIB shares closed unchanged at 13.5 sen with a market capitalisation of RM99.5 million.
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