Sarawak: Sarawak Consolidated Industries Bhd (SCIB) has completed the disposal of its subsidiary SCIB Concrete Manufacturing Sdn Bhd (SCM) for RM113 million. The construction and engineering firm announced that this significant transaction allows the company to concentrate more on its core construction and engineering, procurement, construction, and commissioning (EPCC) segment, while also leading to a reconsideration of its capital-raising strategies.

According to BERNAMA News Agency, the disposal enables SCIB to extract value from its manufacturing business and redirect its focus on remaining construction and EPCC pursuits. With SCM no longer a subsidiary, SCIB is set to reassess its operational structure and funding needs to align with its post-disposal business goals.

SCIB also stated that it would not go ahead with the proposed rights issue with warrants under the existing arrangement. The proceeds from the previously proposed rights issue were intended for constructing factory facilities and purchasing machinery for SCM's manufacturing operations, which are now irrelevant due to the disposal.

Executive chairman Datuk Chong Loong Men remarked that the completion of the SCM disposal represents a crucial step in SCIB's corporate realignment. This move allows the company to derive substantial value from its manufacturing assets and landbank, enhancing its financial capacity to explore larger opportunities within the construction and EPCC sectors. With SCM no longer part of its operations, SCIB will re-evaluate its funding needs and capital strategies in line with its updated business structure.

Looking ahead, SCIB mentioned the possibility of a revised rights issue with warrants scheme and may submit a new application to Bursa Malaysia in the future, contingent on further evaluation of its funding requirements. Any revised scheme would require the necessary approval from shareholders in accordance with regulatory standards.