YTL Corp Announces Voluntary Share Exchange Offer For Shares & ICULS Of YTL Land & Development Berhad

Kuala Lumpur, Thursday 13 June 2019

YTL Corporation Berhad announced today that it has extended a voluntary share exchange offer (“Offer”) to YTL Land & Development Berhad, which will enable the securities holders of YTL Land to exchange their shares and/or irredeemable convertible unsecured loan stocks (ICULS) for shares in YTL Corp.

The Offer is to be undertaken at an offer price of RM0.36 for each ordinary share in YTL Land and an offer price of RM0.32 for the YTL Land ICULS, to be satisfied through the issuance of ordinary shares in YTL Corp at an issue price of RM1.14. This translates into an exchange ratio of approximately 0.32 YTL Corp share for each YTL Land share, meaning that a YTL Land shareholder would receive 32 YTL Corp shares for every 100 YTL Land shares surrendered.

Meanwhile, the exchange ratio for the YTL Land ICULS is approximately 0.28 YTL Corp share for each ICULS, meaning that an ICULS holder would receive 28 YTL Corp shares for every 100 YTL Land ICULS surrendered.

YTL Corp’s rationale for the Offer is that the relatively low trading activity of YTL Land’s securities does not present its shareholders and ICULS holders with the necessary platform to maximise the value of their investments in YTL Land via a continued listing. Based on historical trading patterns, it is YTL Corp’s view that these low liquidity levels are likely to continue and, accordingly, the purpose of maintaining YTL Land’s listing status for the trading liquidity of its shares and ICULS does not appear to have been achieved.

Accordingly, the Offer is a viable way to provide YTL Land’s shareholders and ICULS holders more liquidity for their investments via the exchange into the shares of YTL Corp, particularly as YTL Corp is amongst the 50 largest and most liquid stocks on Bursa Securities.

The Offer also represents an opportunity for YTL Land’s securities holders to participate in the future growth prospects of the enlarged YTL Corp Group, and it is envisaged the full consolidation of the businesses of the YTL Land group and the YTL Corp Group will create a more cohesive and efficient operating structure going forward. The Offer is intended to provide YTL Land’s securities holders with an opportunity to reduce their exposure to a single industry in exchange for an investment in the diversified operations of the YTL Corp Group, which has the added ability to pursue larger scale growth and development opportunities should they arise.

For YTL Corp’s shareholders, the Offer would enable YTL Corp to increase its stake in the business and streamline its property development businesses for the benefit of the wider Group.

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