KUALA LUMPUR: YTL Cement Bhd is planning to acquire an 81.24 per cent interest in Singapore's NSL Ltd for S$227.61 million (RM792.32 million) in cash to expand its industrialised building systems (IBS) sector.
In a filing with Bursa Malaysia Securities, YTL Corp Bhd said YTL Cement has signed a sale and purchase agreement with 98 Holdings Pte Ltd to acquire 303.48 million NSL shares at S$0.75 or RM2.61 a piece.
NSL was incorporated on Aug 12, 1961 as a limited company in Singapore under the name of National Iron and Steel Mills Limited.
It has been listed on the Mainboard of the SGX-ST since 1964.
It is involved in the provision of management services and investment holding while its subsidiaries are principally involved in the manufacturing and sale of building materials, oil and petroleum related products and provision of environmental services.
After the proposed acquisition is completed, YTL Cement is required to make a mandatory unconditional cash offer for the remaining shares in NSL at the same price.
YTL Cement intends to maintain the listing status of NSL and will take necessary actions if the latter's shares held in public hands falls below 10 per cent.
"The proposed acquisition provides a unique opportunity for YTL Corporation Group's expansion via YTL Cement and its subsidiaries into the IBS sectors in Malaysia, Dubai, Finland and Singapore.
"The precast concrete components businesses in Malaysia and Singapore are synergistic to YTL Cement Group's cement business while those in Dubai and Finland present a pivotal opportunity for YTL Cement Group to expand its business footprint into new markets.
"The precast concrete components businesses are expected to facilitate the speed of construction required in rapidly expanding economic segments such as the data centre industry, in addition to supporting the development of innovative solutions across the construction industry," stated YTL Corporation in a filing to Bursa Malaysia.