YTL Power to Realise RM2.2 Billion Gain on Disposal of 33.5% Stake in ElectraNet
Kuala Lumpur, Tuesday 8 February 2022
YTL Power International Berhad announced today the divestment of its 33.5% stake in ElectraNet Pty Ltd in Australia to Australian Utilities Pty Ltd as trustee of Australian Utilities Trust for a sale consideration of A$1.026 billion (approximately RM3.075 billion). YTL Power will realise a gain on disposal of approximately RM2.215 billion 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 30 June 2021, and would result in proforma earnings per share of 26.02 sen.
YTL Power Group Managing Director, Dato' Yeoh Seok Hong, said, "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.
"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$1.026 billion represents a valuation of 1.6 times the regulated and contracted asset base (RCAB) of the company."
ElectraNet operates the high voltage electricity transmission system throughout South Australia, one of the most extensive regional transmission systems in the country, under a 200-year lease, transmitting power from regional generators and interstate sources over long distances to metropolitan and regional areas including large, directly-connected industrial customers. 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.
Following the success of this investment in Australia, the YTL Power Group further expanded its international utility portfolio, acquiring Wessex Water Limited, a water and sewerage operator in the United Kingdom, in 2002, and YTL PowerSeraya Pte Limited, which has a licensed generation capacity of 3,100 megawatts and merchant multi-utilities businesses in Singapore, in 2009. The Group also owns a 60% stake in YTL Communications Sdn Bhd, the operator of the "Yes" network and the first telco to launch 5G services in Malaysia.