corporate

YTL Corp, YTL Power to offer bonus warrants to shareholders [BTTV]

KUALA LUMPUR: YTL Corporation Berhad and YTL Power International Berhad have unveiled plans to issue pro rata bonus warrants to their shareholders as a gesture of appreciation for their loyalty and to bolster future growth initiatives.

YTL Group executive chairman Tan Sri (Sir) Francis Yeoh Sock Ping said that the bonus warrants demonstrate the group's dedication to rewarding its long-term investors.

"The warrants require no upfront outlay and afford our loyal shareholders the option to time their future participation in our Group, at a much lower cost than otherwise available.

"As with other distributions and instruments we have issued previously over the past decades, we believe this distribution of free warrants is the most appropriate way to reward shareholders at this point of our next growth and expansion cycle," he said in a statement.

YTL Corp will issue free warrants on a 1-for-5 basis, allowing shareholders to convert the warrants into ordinary shares at an exercise price of RM1.50 per share during a three-year tenure. This represents a 37 per cent discount to the average share price of RM2.39 as of Wednesday.

Similarly, YTL Power will offer free warrants on a 1-for-5 basis, with a conversion price of RM2.45 per share over three years, reflecting a 40 per cent discount to the average share price of RM4.06.

The the bonus warrants provide shareholders the flexibility to determine when to exercise their warrants within the three-year period, offering an alternative to rights issues.

This approach empowers investors to decide the timing and extent of their equity participation in the companies' growth, he said.

YTL Corp intends to use proceeds raised from the exercise of warrants for new projects and investments and to par down borrowings, as well as to exercise its pro rata share of warrants issued by YTL Power, which is the key utilities arm of the YTL Corp Group.

This will enable YTL Corp to maintain its equity interest in YTL Power and to continue to participate in its future growth and expansion, Yeoh said.

YTL Power plans to use proceeds raised from the exercise of warrants to fund the equity portion of future investments, focusing on businesses, assets and activities that may be complementary and/or synergistic to its existing businesses.

The proposals are designed to provide YTL Corp and YTL Power with additional funds upon the exercise of the respective warrants during their tenure. This will also enhance their respective capital bases through an increase in shareholders' funds, offering greater flexibility to meet future funding requirements.

The free warrants will be issued as a bonus to eligible shareholders on an unlisted, non-tradable, and non-transferable basis.

Both proposals are subject to approval from Bursa Malaysia Securities Berhad, as well as shareholders' approval at the respective extraordinary general meetings. YTL Corp and YTL Power will announce the entitlement date for the bonus issuance of free warrants once the necessary approvals are obtained.

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