YTL Power to sell its entire 33.5% stake in ElectraNet Transmission to Australian Utilities Trust for AUD$1.026 billion or RM3.05 billion. Upon completion of the proposed disposal, ElectraNet will cease to be an associated company of YTL Power.
The Malaysian Independent Power Producer acquired a stake in ElectraNet in 2000 which operates the high voltage electricity transmission system throughout South Australia 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. In addition to its regulated activities, ElectraNet is the owner and operator of an extensive unregulated, contracted portfolio of connection and transmission assets. The South Australian transmission network is one of the most extensive regional transmission systems in Australia and consists of 97 high voltage substations and approximately 5,900 circuit kilometres of transmission lines covering a total area of 200,000 square kilometres.
YTL completed the acquisition of its 33.5% equity interest and loan notes in ElectraNet in December 2000 for a total consideration of AUD$58.5 million (approximately RM122.9 million, based on the then prevailing exchange rate of AUD1.00:RM2.10).
This marks a significant gain for YTL, the divestment was its first foray offshore, building on its origins as Malaysia’s first Independent Power Producer with its two power stations in Paka and Pasir Gudang. Following the success of this investment in Australia, the 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, a 20% effective interest in PT Jawa Power, which owns a 1,220-megawatt power station in Indonesia, and a 45% stake
in Attarat Power Company, which is constructing a 554-megawatt oil shale-fired power project in Jordan.
RM2.7 billion of the proceeds will be used for future investment while RM305 million will be for general corporate purposes, YTL adds the disposal represents an opportunity to realise gains from a mature investment that can further optimise the balance of assets in its business portfolio.