KUALA LUMPUR: YTL Power International Bhd's shares opened flat before trending lower today, after it triggered a mandatory takeover offer (MTO) of Ranhill Utilities Bhd following a purchase of a 31.42 per cent stake at 99.5 sen a share.
Ranhill Utilities's share price was down 3.7 per cent to RM1.27 a share for in morning trade.
Yesterday, YTP Power announced that its 70 per cent owned subsidiary, SIPP Power Sdn Bhd purchased 405.18 million shares in Ranhill Utilities for RM405.18 million.
According to a filing with the bourse, the shares will be owned by Tan Sri Hamdan Mohamad, Hamdan Inc. (Labuan) Pte Ltd and Hamdan (L) Foundation.
"Upon completion of the acquisition, the direct shareholding of the SIPP in Ranhill will increase from 2.90 per cent to approximately 34.32 per cent."Collectively with YTL Power, their aggregate direct shareholding in Ranhill will increase from 21.77 per cent to approximately 53.19 per cent," it said.
SIPP and YTL Power stated that it intends to maintain the listing status of Ranhill on the Main Market of Bursa Securities.
The acquisition is expected to be completed in June 2024.
YTL Power said the acquisition represents an opportunity to acquire mature business operating in segments closely correlated with its existing core competencies and will complement its utilities portfolio, both geographically and operationally.
"The board has taken a long-term view of the prospects of Ranhill Group as it considers Ranhill to be a strategic fit to YTL Power's portfolio of utility assets and that the transactions will contribute positively to the future financial performance of YTL Power," it said.