Maybank Investment Bank and UOB Malaysia announced that they have been appointed the underwriters and the bookrunners, on an equal basis, for a RM2.0 billion Islamic facility granted to Malayan Cement Berhad.
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. 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 for a total estimated amount of RM5.2 billion.
Mr Fad’l Mohamed, Chief Executive Officer, Maybank Investment Bank, said, “Maybank is pleased 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. Ms 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, 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 hailed the acquisition exercise by MCB will allow YTL to streamline and improve its operational efficiencies as it leverages each other’s resources, expertise and experience.
This consolidation is about economies of scale, enhance market presence, reduce duplicated functions, and ultimately provide seamless solutions to customers.”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, it is involved in the production, manufacturing and trading of cement, clinker, ready-mix concrete and other building materials and related products.
