Khazanah unit UEM weighs sale of $230 million cement firm, sources say

A subsidiary of Khazanah Nasional Bhd., Malaysia’s sovereign wealth fund, is considering selling its cement unit, people with knowledge of the matter said.

UEM Group Bhd., an infrastructure and services conglomerate, is working with financial advisers on the potential sale of Cement Industries of Malaysia Bhd., said the people, who asked not to be identified as the process is private. UEM is seeking a valuation of about 1 billion ringgit ($230 million) for CIMA, as the cement maker is known, and companies in the industry have shown interest, the people said.

Deliberations are at an early stage and UEM could decide not to proceed with the divestment, the people said. A representative for UEM declined to comment.

Founded in 1975, CIMA sells cement and ready-mixed concrete, and has been involved in iconic projects in Malaysia ranging from expressways to bridges and railroads, its website shows. The company was taken private and delisted from the Bursa Malaysia exchange in 2008 by UEM, according to a stock exchange filing.

UEM started as a construction company and evolved into a conglomerate focused on expressways, township and property development, engineering and construction and asset and facility management, its website shows.