Hume Cement Industries Berhad of Malaysia, controlled by local tycoon Tan Sri Quek Leng Chan, is selling its Hume Concrete subsidiary to YTL Corporation Berhad’s subsidiary YTL Cement.
The RM215m (US$52.4m) transaction is expected to be completed in the second quarter of next year. The disposal is part of Hume Cement’s strategic decision to divest non-core assets to enhance its operational focus and reallocate capital towards its cement operations.
Hume Concrete is a premier manufacturer of precast concrete products, with 3 main factories strategically located throughout Malaysia to cater for both local and export markets. Hume Cement said the estimated disposal consideration will comprise the base disposal price of RM215m, minus RM42.5m redemption sum for its redeemable convertible unsecured loan stocks (RCULS), plus the differential between Hume Cement’s estimated shareholders’ funds at completion and the shareholders’ funds as at October 2025 of RM21.1m.
The deal involves 30 million ordinary shares that represent the entire equity interest in Hume Concrete. Of the RM215m gross proceeds, RM148.9m or 69.2% will be allocated for investment opportunities and expansion plans within its cement business, while RM63.8 million or 29.7% will be used for working capital. The remaining RM2.3 million will be set aside to cover fees, charges and costs related to the disposal.
According to Hume Cement’s FY2025 annual report, its concrete segment accounted for about 6% of the group’s total revenue of RM1.11bn. Hume Concrete was operating at a loss from fiscal years 2021 to 2024, so the aforementioned transaction is not expected to have a significant impact on its revenue.
Hume Cement had initiated the cessation of its concrete operations in Peninsular Malaysia in the financial year ended June 30, 2025 by reducing a number of manufacturing sites. The decision to reduce and exit its concrete manufacturing footprint in Peninsular Malaysia came after a comprehensive review aimed at optimizing operations and ensuring long-term sustainability.
In addition to YTL Cement, the YTL Corporation also controls Malayan Cement. The combination of these two companies already gives it a dominant position in the Malaysian cement industry. Now, with the acquisition of Hume Concrete, YTL says its position becomes even more secure.
