YTL Power to gain RM2.2bil gain on disposal of 33.5% stake in ElectraNet

YTL Power group managing director Datuk Yeoh Seok Hong

KUALA LUMPUR: YTL Power International Bhd has divested its 33.5% stake in ElectraNet Pty Ltd in Australia to Australian Utilities Pty Ltd as trustee of Australian Utilities Trust for A$1.026bil (approximately RM3.075bil).

YTL Power will realise a gain on disposal of approximately RM2.215bil upon completion of the transaction.

The divestment contributes a 16.8% boost to YTL Power’s proforma net assets per share, with the value increasing to approximately RM1.88 per share upon completion of the disposal compared to RM1.61 for the financial year ended June 30, 2021, and would result in proforma earnings per share of 26.02 sen.

“This transaction presented us with the opportunity to realise gains from a mature investment, further optimise the balance of assets in our business portfolio and increase the flexibility to deploy our cash reserves towards viable new ventures that complement our existing businesses

“These include, in particular, new investments in solar energy and other renewables, in line with our shift towards more sustainable energy solutions moving forward,” YTL Power group managing director Datuk Yeoh Seok Hong said in a statement.

“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$1.026bil represents a valuation of 1.6 times the regulated and contracted asset base (RCAB) of the company,” he added.

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 and Pasir Gudang.