YTL Power to acquire Singapore power plant for RM1b

KUALA LUMPUR: YTL Power International Bhd (YTLP) has entered into a put and call option agreement for the acquisition of a power plant and associated assets of Tuaspring Pte Ltd for a total consideration of S$331.45 million (around RM1 billion).

In a filing with Bursa Malaysia yesterday, YTLP said the S$230 million of the purchase consideration will be settled in cash and S$101.45 million in ordinary shares and loan notes amounting to 7.54% of the post-acquisition equity in YTL Utilities (S) Pte Ltd.

It said the assets comprise a land lease on a site at 90 Tuas South Avenue 3, Singapore, with a 20-year remaining term and the 396mw combined cycle power station, stocks and associated assets.

“YTLP and its subsidiaries are continuously seeking to develop and expand their presence in utility businesses both in Malaysia and offshore.

“The assets form a logical extension of YTLP’s existing multi-utility operations in Singapore,” it said.

The group added that the acquisition is in line with its strategy of investing in long-term geographically diverse infrastructure assets and that the asset will contribute positively to its future earnings.

It expects to complete the acquisition by the end of the second quarter of this year, barring unforeseen circumstances.

YTLP’s share price fell two sen or 3.1% to 62.5 sen yesterday, with a market capitalisation of RM5.1 billion.