KUALA LUMPUR (May 30): YTL Cement Bhd, a unit of the giant conglomerate YTL Corp Bhd (KL:YTL), is seeking to sell a 5% stake in building materials group Malayan Cement Bhd (KL:MCEMENT) for up to RM325.4 million.

According to a term sheet seen by The Edge on Thursday, YTL Cement is offering its 66 million shares in Malayan Cement through an accelerated bookbuilding process, pricing them at RM4.93 per share. 

This represents a discount of up to 5.19% to Malayan Cement's closing price of RM5.20 on Thursday, and 6.29% discount to the stock’s five-day volume weighted average price of RM5.2610.

At RM5.20, Malayan Cement is valued at RM6.88 billion.

The offer is set to close on Thursday night, with the trade date fixed for Friday. Maybank Investment Bank is the bookrunner for the block of shares being offered.

Upon completion of the deal, YTL Cement’s shareholding in Malayan Cement is expected to fall to 73.58%, from 78.58% previously, according to the company's last disclosure of its shareholding on January 23.

The deal would also increase Malayan Cement’s public shareholdings spread to above the 25% level.

Recall that YTL Cement’s RM5.16 billion merger deal with Malayan Cement in 2022 gave rise to the former owning over 78% stake, and back then, Bursa Malaysia had accepted a public shareholding spread of 21.37%.

However, Bursa also advised Malayan Cement to use its best endeavours to increase the percentage of public shareholdings spread to 25%.