YTL Corp Announces Voluntary Share Exchange offer to YTL Cement Shareholders

Kuala Lumpur, Monday 19 December 2011

YTL Corporation Berhad announced today that it has extended a voluntary share exchange offer (“Offer”) to YTL Cement Berhad, which will enable the shareholders and holders of the Irredeemable Convertible Unsecured Loan Stocks (ICULS) of YTL Cement to exchange their YTL Cement shares and ICULS for shares in YTL Corp.

The Offer is to be undertaken at an offer price of RM4.50 for each YTL Cement share which translates into an exchange ratio of approximately 3.17 ordinary shares of RM0.10 each in YTL Corp for every 1 ordinary share of RM0.50 each held in YTL Cement. For the ICULS holders, the Offer is to be undertaken at an offer price of RM2.21 for every RM1.00 in ICULS held which translates to an exchange ratio of approximately 1.56 YTL Corp shares for each ICULS.

Commenting on the Offer, YTL Group Managing Director Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping, CBE, FICE, said, “This transaction represents a homecoming opportunity for the shareholders of YTL Cement as it provides them with the opportunity to better maximise the value of their investments by exchanging their shares into the diversified business of YTL Corp, the bulk of earnings of which are anchored by its regulated water and utilities concessions, as well as its cement, construction, property and hospitality businesses.  
 
“YTL Corp, as a major shareholder of YTL Cement, recognises that the liquidity of YTL Cement’s shares has continued to remain at relatively low levels, which presents a challenge to YTL Cement’s shareholders looking to adjust their investment strategies or portfolios. We fully believe that the exchange into YTL Corp’s shares is the best option and will be mutually beneficial to both companies. For YTL Corp’s shareholders, the Offer represents an opportunity to increase YTL Corp’s stake in a highly efficient and profitable business and consolidate a greater proportion of its earnings and performance for the benefit of the wider Group.”

“YTL Cement has been listed on Bursa Securities since 1993, transferring to what is now the Main Market in 1997. During that time, the YTL Cement Group has grown exponentially, expanding its operations across the Peninsula and into overseas markets in China and Singapore. To date, YTL Cement has achieved significant operational efficiencies across its logistics and distribution networks and expanded the scope of its product offerings, and has done so without any significant need to tap the equity markets for capital. Therefore, we believe that the Offer will serve the interests of the shareholders of both YTL Corp and YTL Cement equally.”

The Proposed Offer is subject to approval of the relevant regulatory authorities and further details will be announced in due course.