YTL Power International Berhad divestment of its 33.5% stake in ElectraNet Pty Ltd in Australia to Australian Utilities Pty Ltd for A$1.026 billion (approximately RM3.075 billion) will generate RM2.215 billion in gains upon completion of the transaction.
The divestment contributes a 16.8% boost to the groups proforma net assets per share, with the value increasing to approximately RM1.88 per share upon completion of the disposal compared to RM1.61 for the financial year, and would result in proforma earnings per share of 26.02 sen.
YTL Power Group Managing Director, Dato’ Yeoh Seok Hong, said, “This transaction presented us with the opportunity to realise gains from a mature investment, further optimise the balance of assets in our business portfolio and increase the flexibility to deploy our cash reserves towards viable new ventures that complement our existing businesses. These include, in particular, new investments in solar energy and other renewables, in line with our shift towards more sustainable energy solutions moving forward.
“The timing for divestment proved optimal in light of the attractive valuation of regulated utility assets and strong investor interest. The sale consideration of A$1.026 billion represents a valuation of 1.6 times the regulated and contracted asset base (RCAB) of the company.”
ElectraNet operates the high voltage electricity transmission system throughout South Australia, one of the most extensive regional transmission systems in the country, 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. YTL Power’s 33.5% investment in ElectraNet in 2000 was its first international foray, building on its origins as Malaysia’s first Independent Power Producer (IPP) with its two power stations in Paka and Pasir Gudang.