A total of 71 million YTL Power shares held by TNB were sold to local and foreign buyers at RM3.30 apiece, higher than TNB's original investment cost, with the Employees Provident Fund (EPF) taking up 10 million shares.
The EPF is already a substantial shareholder in both TNB and YTL Power.
Commerce International Merchant Bankers Bhd and Avenue Capital Resources Bhd were appointed lead manager and joint book-runner to dispose of TNB's entire 4.4% stake or 102 million shares in YTL Power.
A source told StarBiz that TNB had planned to sell 62 million shares initially at RM3.30 per share. However, due to overwhelming response to the accelerated book-building process, 71 million shares were eventually placed out.
The strong demand for YTL Power shares was partly attributed to the stock's consistent dividend record. At RM3.30, the stock offers a gross yield of 6%.
YTL Power has said it would pay a gross dividend of 20 sen per share, less tax, on Jan 9 next year. The stock would be traded ex-dividend on Tuesday, with the last lodgement date for the dividend payment set for Thursday.
Yesterday, CIMB told the KLSE on behalf of TNB that the EPF had bought 10 million YTL Power shares for RM33mil cash. TNB's original cost of investment for the shares was RM32.7mil.
“The disposal is part of TNB's plan to rationalise its minority stake in independent power producers,'' the statement said.
It added that the placement price was arrived at based on the book-building process and represented a 2.8% discount to the five-day weighted average price of YTL Power shares up to Dec 11 of RM3.40.
On July 24 this year, YTL Corp had bought 116.72 million shares or a 5.16% stake in YTL Power for RM2.75 per share from Hong Kong-based CLP Power Projects (M) Ltd. The transaction increased YTL Corp's stake in its subsidiary to 60% at the time.
A day earlier, YTL Corp had placed out 120 million YTL Power shares at RM2.90 per share to various local institutional investors.
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