Thursday, July 7, 2011

YTL Power expects to realise RM210.1m gain from YTL Jawa BV share sale

KUALA LUMPUR: YTL POWER INTERNATIONAL BHD [] expects to realise a gain on disposal of RM210.10 million from the sale of a 42.86% equity interest in YTL Jawa BV to Marubeni Corporation for US$224 million (RM680.96 million).

The company said on Thursday, July 7 that its wholly owned unit YTL Jawa Power Holdings Ltd had entered into the share purchase agreement with Maubeni and its subsidiary Aster Power for the sale of 7,715 ordinary shares of '1 each and certain company interests.

YTL Jawa BV is the holding company of YTL Jawa Power BV, which in turn holds a 35% stake in P.T. Jawa Power (Jawa Power).

Jawa Power is the owner of a coal-fired power generation plant with an installed capacity of 1,220 megawatts ('MW') located at the Paiton Power Generation Complex in the district of Probolinggo, in East Java, Indonesia.

YTL Power said it intends to utilise the proceeds from the disposal for future investments in utility assets, working capital requirements and/or for the paring down of existing borrowings.

'There is no intended timeframe at this juncture for full utilisation of the proceeds from the disposal.

'Until such time as the proceeds are fully utilised, they will be placed in interest-bearing deposits with licensed financial institutions,' it said.

On the rationale for the share sale, YTL Power said it would enable Aster Power and Marubeni to co-invest in YTL Jawa BV and form a strategic partnership with the group, which was in line with YTL Power's growth strategy of investing in long-term geographically diverse infrastructure assets, whilst concurrently achieving synergies across its portfolio of utility businesses.

It said the strategic partnership would facilitate collaborations between YTL Power and Marubeni on potential investments and the development of future opportunities in the global utilities industry.

'The YTL Power group is continuously seeking to develop and expand its presence in utility businesses both in Malaysia and offshore,' it said.

Currently, YTL Power owns 100% stakes in Wessex Water Limited, a water and sewerage operator in the United Kingdom, PowerSeraya Limited, which has a total licensed capacity of 3,100 MW representing approximately 25% of Singapore's licensed generation capacity and operates multi-utility businesses, and YTL Power Generation Sdn Bhd, an independent power producer which owns power stations with a combined generation capacity of 1,212 MW in Malaysia.

In addition to its 35% stake in Jawa Power, the group also has an indirect 33.5% investment in ElectraNet Pty Ltd, the company which owns and operates the power transmission grid for the state of South Australia under a 200-year concession.


No comments:

Post a Comment