by BERNAMA / pic credit: ANNUAL REPORT
YTL Power International Bhd and its wholly-owned indirect subsidiary, YTL Power Investments Ltd, plan to dispose of 33.5% equity interest and loan notes in ElectraNet Pte Ltd for A$1.03 billion (RM3.06 billion) to Australian Utilities Pte Ltd (AUP) as trustee of Australian Utilities Trust.
In a statement today, YTL Power said it expects to realise a gain on disposal of RM2.21 billion upon completion of the transaction.
The group said the divestment contributes a 16.8% boost to YTL Power’s proforma net assets per share, with the value increasing to RM1.88 per share upon completion of the disposal from RM1.61 for the financial year ended June 30, 2021, and would result in proforma earnings per share of 26.02 sen.
Group MD Datuk Yeoh Seok Hong said the transaction presented them with the opportunity to realise gains from a mature investment, further optimise the balance of assets in the group’s business portfolio and increase the flexibility to deploy cash reserves towards viable new ventures that complement its existing businesses.
These include, in particular, new investments in solar energy and other renewables, in line with its shift towards more sustainable energy solutions.
“The timing for divestment proved optimal in light of the attractive valuation of regulated utility assets and strong investor interest.
“The sale consideration of A$1.026 billion represents a valuation of 1.6 times the regulated and contracted asset base of the company,” he said.
ElectraNet operates the high voltage electricity transmission system throughout South Australia, one of the most extensive regional transmission systems in the country, under a 200-year lease, transmitting power from regional generators and interstate sources over long distances to metropolitan and regional areas including large, directly-connected industrial customers.
YTL Power’s 33.5% investment in ElectraNet in 2000 was its first international foray, building on its origins as Malaysia’s first Independent Power Producer (IPP) with its two power stations in Paka, Terengganu and Pasir Gudang, Johor.
In 2002, YTL Power further expanded its international utility portfolio, acquiring Wessex Water Ltd, a water and sewerage operator in the UK, and in 2009, the group acquired YTL PowerSeraya Pte Ltd, which has a licensed generation capacity of 3,100 megawatts and merchant multi-utilities businesses in Singapore.
The group also owns a 60% stake in YTL Communications Sdn Bhd, the operator of the YES network and the first telco to launch 5G services in Malaysia.
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