KUALA LUMPUR (Dec 19): YTL CORPORATION BHD [] has extended a voluntary share exchange offer to the holders of YTL CEMENT BHD [] shares and its loan stocks to maximise the value of their investments.
It said on Monday the offer was RM4.50 for each YTL Cement share, or 3.17 shares of 10 sen each in YTL Corp for every one ordinary share of 50 sen each held in YTL Cement.
For the irredeemable convertible unsecured loan stocks (ICULS) holders, the offer was RM2.21 for every RM1 in ICULS held, or 1.56 YTL Corp shares for each ICULS.
YTL group managing director Tan Sri Francis Yeoh Sock Ping described the transaction as a “homecoming opportunity” for YTL Cement shareholders as they could better maximise the value of their investments by exchanging their shares into the diversified business of YTL Corp.
Yeoh said the bulk of YTL Corp’s earnings was underpinned by its regulated water and utilities concessions, as well as its cement, CONSTRUCTION [], property and hospitality businesses.
“YTL Corp, as a major shareholder of YTL Cement, recognises that the liquidity of YTL Cement’s shares has continued to remain at relatively low levels, which presents a challenge to YTL Cement’s shareholders looking to adjust their investment strategies or portfolios,” he said.
He added the exchange plan would also enable YTL Corp’s shareholders to increase the stake in a highly efficient and profitable business and consolidate a greater proportion of its earnings and performance for the benefit of the wider group.
It said on Monday the offer was RM4.50 for each YTL Cement share, or 3.17 shares of 10 sen each in YTL Corp for every one ordinary share of 50 sen each held in YTL Cement.
For the irredeemable convertible unsecured loan stocks (ICULS) holders, the offer was RM2.21 for every RM1 in ICULS held, or 1.56 YTL Corp shares for each ICULS.
YTL group managing director Tan Sri Francis Yeoh Sock Ping described the transaction as a “homecoming opportunity” for YTL Cement shareholders as they could better maximise the value of their investments by exchanging their shares into the diversified business of YTL Corp.
Yeoh said the bulk of YTL Corp’s earnings was underpinned by its regulated water and utilities concessions, as well as its cement, CONSTRUCTION [], property and hospitality businesses.
“YTL Corp, as a major shareholder of YTL Cement, recognises that the liquidity of YTL Cement’s shares has continued to remain at relatively low levels, which presents a challenge to YTL Cement’s shareholders looking to adjust their investment strategies or portfolios,” he said.
He added the exchange plan would also enable YTL Corp’s shareholders to increase the stake in a highly efficient and profitable business and consolidate a greater proportion of its earnings and performance for the benefit of the wider group.
