Five companies ?Germany-based Heidelberg Materials AG (XTRA:HEI), China-based Huaxin Cement Co., Ltd. (SHSE:600801), Malaysian Resources Corporation Berhad (KLSE:MRCB), a company which is connected to Yinson Holdings Berhad (KLSE:YINSON), and companies linked to Pahang and Negeri Sembilan royalty? have been shortlisted to buy Cement Industries of Malaysia Berhad (CIMA), a wholly-owned subsidiary of UEM Group Berhad. According to sources, the foreign companies would likely need to form a consortium with local bumiputera parties holding a majority stake, but little information was available at press time.

?It is a long process as there are certain criteria that need to be met before UEM can decide if it wants to sell CIMA. The conditions include the right price, technical capabilities, especially in addressing the ESG (environmental, social and governance) factors, as well as ensuring bumiputera ownership remains intact?, a source tells The Edge. It is worth noting that CIMA has been the main supplier for most bumiputera contractors in Malaysia.

?At the end of the day, it boils down to pricing? if UEM [Group] deems it worth selling, says a market observer. The highest bidders are the foreign outfits, Heidelberg Materials and Huaxin Cement.

It is not clear at this juncture whether Yinson, an oil and gas (O&G) company, is bidding or if it is Yinson Legacy Sdn Bhd, the vehicle of Yinson Holdings?s Executive Chairman Lim Han Weng, who holds 19.71% equity interest in the O&G giant. His son, Lim Chern Yuan, is its Chief Executive Officer. It is also not clear if the Yinson bid is a standalone or in partnership with a bumiputera company.

Asked to comment, Yinson?s external media and investor relations outfit merely tells The Edge, Yinson [Holdings] is not buying any cement companies. As for MRCB, the bid makes sense as construction and property development are the company?s mainstay. The possible sale of CIMA emerged last year when UEM Group was approached for a potential acquisition of the company.

However, it is learnt that the group was not very keen to sell CIMA at that juncture. Nevertheless, it opened up the offer into a bid and undertook a valuation exercise for its cement manufacturing assets. UEM Group declined to comment.