QUOTE(nexona88 @ Jun 4 2015, 06:25 PM)
Lafarge Malaysia cements position as top producer, ratings affirmedRAM Rating Services has reaffirmed the ratings of Lafarge Malaysia Bhd’s debt notes based on the strong business and financial profile.
“The ratings are premised on Lafarge Malaysia’s strong business and financial profile. The group is the leading producer of cement in Malaysia, whose annual production capacity of almost 13 million tonnes accounts for about 40% of total production capacity in Peninsular Malaysia,” it said.
RAM Ratings expected Lafarge Malaysia to expand its market share further after its impending merger with Holcim Malaysia Sdn Bhd and also the completion of the expansion at its Rawang and Kanthan plant by 2016.
It notes the cement producer is able to export excess production overseas through its access to jetty in Langkawi, and by leveraging on the global distribution network of its parent, Lafarge SA.
The ratings agency pointed out Lafarge Malaysia’s financial profile stayed superior as at end-December 2014. The net cash position and strong debt-coverage metrics were underpinned by the group’s strong cashflow-generating ability.
Its operating profit before depreciation, interest and tax margin remained commendable at 19.2% (FY December 2013: 23.3%).
Now changed name
Malayan cement bhd
YTL Cement, a subsidiary of YTL Corporation Berhad, acquired a 51% stake in Malayan Cement (formerly known as Lafarge Malaysia Berhad) on 17 May 2019, upon which Malayan Cement became a subsidiary of the YTL Group.
Following the mandatory take-over offer undertaken in relation to the acquisition, which closed on 13 June 2019, YTL Cement currently holds a 76.98% stake in Malayan Cement.
Malayan Cement today received approval from its shareholders to embark on sales and purchases of cement, clinker, cementitious materials, sand, aggregates and concrete between Malayan Cement and YTL Cement.
The transactions are in the ordinary course of business and are intended to meet the business needs of both groups on the best possible terms.
Since the acquisition, the YTL Cement Group has worked towards integrating Malayan Cement's operations, and today's outcome is a vital step in this process to further develop its position as a leading, home-grown, Malaysian-owned cement company, enhancing its ability to offer customers the full range of cement products, maximise economies of scale to improve cost efficiencies and streamline procurement, logistics and distribution networks.
Dato' Sri Michael Yeoh Sock Siong, Managing Director of YTL Cement and Malayan Cement, acknowledged the overwhelming support from the minority shareholders and expressed his gratitude for this strong tacit endorsement of the rationalisation plans, as the shareholders' approval augurs extremely well for the positive growth and outlook of both YTL Cement and Malayan Cement going forward.
Since 2020
Under YTL group
This post has been edited by plouffle0789: Jan 21 2024, 07:45 PM 
Jun 4 2015, 06:25 PM, updated 2y ago
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