YTL Corp announced that YTL Cement, a subsidiary has entered into a conditional sale and purchase agreement with 98 Holdings Pte Ltd for the proposed acquisition NSL a company listed on the Mainboard of the Singapore Exchange Securities Trading Limited for RM792 million.
Upon completion of the proposed acquisition, YTL Cement's shareholding in NSL will be approximately 81.24%. Accordingly, YTL Cement will be required to undertake the Proposed MO pursuant to The Singapore Code on Take-overs and Mergers and the Securities and Futures Act 2001 of Singapore.
The proposed aquisition entails YTL in acquiring 303,484,453 NSL Shares for a total cash consideration of SGD227.6 million or SGD0.75 (equivalent to RM2.61) per NSL Share..
NSL was incorporated on 12 August 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 assumed the name of NatSteel Ltd on 31 May 1990 before assuming its present name of NSL Ltd with effect from 15 October 2008. NSL is principally 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.
NSL Group provides, among others, (i) industrialised building system ("IBS") solutions through its precast concrete components and prefabricated bathroom unit ("PBU") and (ii) environmental services. It is one of the leading producers of (i) precast concrete components in Malaysia and Dubai and (ii) PBUs in Finland and one of the leading suppliers of precast concrete components in Singapore. It is also a key player in integrated environmental services in Singapore covering the treatment and logistics services of hazardous industrial wastewater from the chemicals sector and oily wastewater from both land and marine transportation sectors. Its Finnish subsidiary is a significant player in the design and supply of ship fire doors for the cruise ship industry.
The Proposed Acquisition provides a unique opportunity fo the 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.
In addition, the Proposed Acquisition facilitates expansion of YTL Cement Group's environmental services business into Singapore through NSL Group's environmental service business in Singapore with synergistic advantages.