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YTL Power International Bhd plans to acquire a 396 megawatt combined cycle power plant and associated assets in Singapore for S$331.45 million (about RM1 billion). -- NSTP Archive
YTL Power International Bhd plans to acquire a 396 megawatt combined cycle power plant and associated assets in Singapore for S$331.45 million (about RM1 billion). -- NSTP Archive

KUALA LUMPUR: YTL Power International Bhd plans to acquire a 396 megawatt combined cycle power plant and associated assets in Singapore for S$331.45 million (about RM1 billion).

The assets include a land lease over a site located at 90 Tuas South Avenue 3 and stocks.

In a filing with Bursa Malaysia, YTL Power said its wholly-owned YTL PowerSeraya Pte Ltd had entered into a put and call option agreement with Tuaspring Pte Ltd for the proposed acquisition.

The acquisition would be settled via S$230 million in cash and S$101.45 million comprising ordinary shares and loan notes amounting to 7.54 per cent of the post-acquisition equity in YTL Utilities (S) Pte Ltd, the immediate holding company of YTL PowerSeraya.

YTL Power said the acquisition represents a good opportunity to acquire an efficient, operating asset with a proven operational track record.

The power plant was commissioned in 2016.

It was originally constructed as part of a water desalination project following a tender held by the Public Utilities Board of Singapore (PUB).

Following defaults by Tuaspring, the water purchase agreement was terminated by PUB in 2019.

The assets are being sold via a receiver and manager process managed by Baker Tilly Reid following an enforcement event under Tuaspring’s banking facilities provided by Malayan Banking Bhd's Singapore Branch.

YTL Power said the acquisition would enable the group to integrate the assets into YTL PowerSeraya’s existing businesses and consolidate its power generation capacity in Singapore.

"The YTL Power group are continuously seeking to develop and expand their presence in utility businesses both in Malaysia and offshore.

“The board has taken a long-term view on the prospects of the assets as it considers the assets to be a strategic fit to the YTL Power Group’s ongoing power generation business, and an opportunity to pursue its expansion strategy," it said.

YTL Power is an international multi-utility group active across key segments of the utilities industry, with a strong track record in both developing greenfield projects and acquiring operational assets through competitive auctions.

It currently operates in Malaysia, Singapore, the United Kingdom (UK), Indonesia and Australia, with stakes in projects under development in Jordan and Indonesia.

YTL Power said barring any unforeseen circumstances, the proposed acquisition was expected to be completed by the end of the second quarter of 2020.

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