PETALING JAYA: YTL Power International Bhd plans to acquire the power plant and associated assets of Tuaspring Pte Ltd for S$331.45 million (RM1 billion).
YTL Power and YTL PowerSeraya’s wholly owned subsidiary Taser Power Pte Ltd today entered into a put and call option agreement with Tuaspring for the proposed acquisition.
The exercise is to be settled via S$230 million in cash and S$101.452 million comprising shares and loan notes amounting to 7.54% of the post-acquisition equity in YTL Utilities (S) Pte Ltd, the immediate holding company of YTL PowerSeraya, with an estimated net book value of S$101.45 million.
The assets comprise principally a land lease over a site located at 90 Tuas South Avenue 3, Singapore, with a 20-year remaining term and the 396 megawatt (MW) combined cycle power station and stocks and associated assets.
The assets are being sold via a receiver and manager process managed by Baker Tilly Reid following an enforcement event under Tuaspring’s banking facilities provided by Malayan Banking Bhd Singapore Branch.
The cash consideration for the proposed acquisition will be funded by a bank loan.
YTL Power said the group is continuously seeking to develop and expand presence in utility businesses both in Malaysia and offshore.
“The proposed acquisition represents a good opportunity to acquire an efficient, operating asset with a proven operational track record. It would also enable YTL Power to integrate the assets into YTL PowerSeraya’s existing businesses and consolidate its power generation capacity in Singapore.”
The exercise is also in line with the YTL Power group’s strategy of investing in long term geographically diverse infrastructure assets, whilst concurrently achieving synergies across its portfolio of utility businesses.
The deal is expected to be completed by the end of the second quarter of 2020 and will contribute positively to the future earnings of YTL Power.
