YTL scoops up Hamdan’s stake in Ranhill Utilities for RM405m

YTL Power International Bhd’s unit is scooping up shares related to Tan Sri Hamdan Mohamad (picture; right) for RM405.2 million in a move that will see it making an offer for the remaining shares that it does not own.

In an exchange filing today, YTL Power said its indirect 70%-owned subsidiary SIPP Power Sdn Bhd will be paying 99.5 sen per Ranshil shares in the corporate move.

It said SIPP Power today entered into an unconditional share purchase agreement with Hamdan, Hamdan Inc (Labuan) Pte Ltd and Hamdan (L) Foundation for the acquisition of 405.18 million existing ordinary shares in Ranhill representing a 31.42% equity interest in Ranhill, together with 2.03 million Ranhill Shares to be issued pursuant to the share dividend, for total cash consideration of RM405.18 million. 

The acquisition bumps up YTL Power’s holding in Ranhill Utilities to 53.19% from 21.77%, obliging it to extend the mandatory takeover offer (MTO) to acquire all the remaining Ranhill Utilities shares it did not already own.

Ranhill Utilities, which was trading below 70 sen in 2023, began an upward climb in November 2023. It was trading at RM1.57 today.

YTL Power said it intended to maintain the listing status of Ranhill Utilities.

Hamdan is the sole beneficiary of Hamdan Foundation, which was a major shareholder of Ranhill.

He started his career as a structural engineer at the engineering consulting firm of Rankine & Hill Pty Ltd in Perth, Western Australia, and subsequently at Ranhill Bersekutu Sdn Bhd (RBSB) in 1981.

After a sabbatical leave in 1985 to pursue his Masters degree , Hamdan returned to Malaysia and was appointed as director of RBSB in 1988 and eventually became president/CEO of RBSB in 1995.

In November 2000, he became executive director and president/CEO of Ranhill Bhd where he spearheaded the group’s expansion from an engineering and consulting based firm to a full-fledged organisation that engineers, constructs, owns and operates facilities in diverse segments including the infrastructure, environment, power and oil and gas segments.

YTL Power is the utilities arm of YTL Corporation led by Tan Sri Francis Yeoh Sock Ping (left).

YTL Power built on its origins as Malaysia’s first independent power producer (IPP) with its two power stations in Paka and Pasir Gudang, diversifying into the international utilities industry. 

It then acquired Wessex Water Ltd, a water and sewerage operator inthe UK in 2002 and YTL PowerSeraya Pte Ltd, which has a licensed generation capacity of 3,100 megawatts and merchant multi-utilities businesses in Singapore, in 2009.

It also owns a 20% effective interest in PT Jawa Power, which owns a 1,220-megawatt power station in Indonesia, and a 45% stake in Attarat Power Company, the owner of a 554-megawatt oil shale-fired power project in Jordan. — TMR