Malaysiass YTL Corp To Delist Property Development Arm Via Share Exchange Offer

Malaysia-listed YTL Corporation Bhd (YTL Corp) has proposed a conditional share exchange offer to acquire the remaining stake of its property development arm YTL Land and Development Bhd (YTL Land), it said in its filing to Bursa Malaysia.

Following the conditional share exchange offering, YTL Land would be delisted. The exercise is being conducted due to the low trading activity of YTL Land’s shares.

The offer will allow YTL Land shareholders to swap their ownership with YTL Corp’s shares, which is more active on the stock exchange.

YTL Corp is advised by Maybank Investment Bank in this process.

YTL Corp will issue new shares at MYR 1.14 for each of YTL Land’s ordinary shares at an offer price of MYR 0.36, which translates to an exchange ratio of 0.32 times.

Aside from the ordinary shares, YTL Corp is also offering to acquire YTL Land’s irredeemable convertible unsecured loan (ICUL) stocks at an offer price of MYR 0.32, which translates to an exchange ratio of 0.28 times.

As of  June 7, 2019, YTL Corp holds 65.62% stake in YTL Land and 78.95% of the total outstanding YTL Land ICULS.

YTL Land noted a MYR 312.41m of market-cap, while YTL Corp noted a MYR 12.44 billion of market-cap.