KUALA LUMPUR (July 26): YTL Corp Bhd’s move to privatise YTL E-Solutions is expected to have a limited impact on YTL Corp shareholders as share dilution from the share swap will be offset by a higher YTL E-Solutions stake, MIDF Amanah Investment Bank Bhd said.
Diversified group YTL Corp plans to privatise 74.12%-owned subsidiary YTL e-Solutions via a share-exchange scheme. ICT entity YTL e-Solutions said YTL Corp intended to buy the remaining shares in YTL e-Solutions at 55 sen each.
YTL Corp will issue new shares at RM1.65 each, based on an exchange ratio of about 0.333 YTL Corp share for each YTL e-Solutions unit.
Today, MIDF said in a note that it maintained its "neutral" call on YTL Corp, with a target price of RM1.50.
"Limited impact to existing YTL Corp shareholders, as share dilution is offset by value expansion from increased stake in YTL E-Solutions," MIDF said.
At 11:07 a.m., YTL Corp shares were unchanged at RM1.69, for a market capitalisation of RM17.5 billion. The stock saw 293,800 shares traded.