Press Releases
YTL Corp & YTL Power Reward Shareholders with Proposed 1-for-5 Bonus Issues of Free Warrants
Kuala Lumpur, January 23, 2025
YTL Corporation Berhad and YTL Power International Berhad each announced today a proposed pro rata bonus issue of free warrants to shareholders.
YTL Group Executive Chairman, Tan Sri (Sir) Francis Yeoh Sock Ping, PSM, KBE, said, "The proposed bonus issues form part of our ongoing track record of rewarding long term shareholders. The warrants require no upfront outlay and afford our loyal shareholders the option to time their future participation in our Group, at a much lower cost than otherwise available.
“As with other distributions and instruments we have issued previously over the past decades, we believe this distribution of free warrants is the most appropriate way to reward shareholders at this point of our next growth and expansion cycle."
YTL Corp proposes to undertake a bonus issue of warrants to its shareholders on the basis of 1 free warrant for every 5 ordinary shares held. The warrants may be converted into YTL Corp shares at an exercise price of RM1.50 per share during the 3-year tenure of the warrants, representing a discount of about 37%, based on yesterday’s average share price of RM2.39.
YTL Power proposes to undertake a bonus issue of warrants to its shareholders on the basis of 1 free warrant for every 5 ordinary shares held. The warrants may be converted into YTL Power shares at an exercise price of RM2.45 per share during the 3-year tenure of the warrants, representing a discount of about 40%, based on yesterday’s average share price of RM4.06.
The proposals are intended to reward the respective shareholders of YTL Corp and YTL Power via a bonus issue of free warrants with an exercise price set at a discount to the prevailing share price. Shareholders will have the opportunity to both increase their equity participation and further participate in the future growth of the respective companies when the warrants are exercised.
In addition, as compared to a rights issue, the bonus issue of warrants is intended to provide shareholders with more flexibility to decide on their own timing to exercise any warrants, which can be done at any point during the 3-year exercise period.
YTL Corp intends to use proceeds raised from the exercise of warrants for new projects and investments and to par down borrowings, as well as to exercise its pro rata share of warrants issued by YTL Power, which is the key utilities arm of the YTL Corp Group. This will enable YTL Corp to maintain its equity interest in YTL Power and to continue to participate in its future growth and expansion.
YTL Power plans to use proceeds raised from the exercise of warrants to fund the equity portion of future investments, focusing on businesses, assets and activities that may be complementary and/or synergistic to its existing businesses.
The proposals will provide YTL Corp and YTL Power with additional funds when the respective warrants are exercised over their tenure and will also strengthen the respective capital bases of YTL Corp and YTL Power via the increase in shareholders’ funds upon the exercise of the warrants, providing greater flexibility in terms of the options available to meet future funding requirements.
The free warrants will be distributed as a bonus issue to entitled shareholders, on an unlisted, non-tradeable and non-transferable basis.
Both proposals are subject to approval from Bursa Malaysia Securities Berhad and shareholders’ approval at respective extraordinary general meetings to be convened. YTL Corp and YTL Power will each determine and announce the entitlement date for the bonus issue of free warrants in due course, upon receipt of the requisite approvals.
Bursa Annoucement links:
