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57 comment(s). Last comment by dragon328 2022-12-09 19:41

dragon328

1,997 posts

Posted by dragon328 > 2022-04-27 11:15 | Report Abuse

What I am saying is that YTL is not shy of doing deals that create value for the shareholders, and the family is the largest shareholders of YTL and YTL Power. It is always their interests to create more value for YTL and YTLPower.
Now what's wrong with listing up Wessex? Just losing a minority stake in this regulated asset, but it would still control majority share. The benefits of listing Wessex overwhelmingly outweight the disadvantage. First Wessex would be able to raise funds to fund its capex and maintain high dividends, secondly YTLPI would get back some handsome cash to unlock value, thirdly it would give a proper value to Wessex so that investors know how much it is worth to YTLPI and will not undervalue YTLPI at current depressed level, forthly it would provide options for YTLPI to buy back some shares in Wessex at much lower value when stock market enters into a bear market and hence to create value from the same asset, eg. listing of 10% Wessex shares at 1.5x RCV now and buy back later at 1.0x RCV would nett a cash difference of close to RM1.7 billion for YTLPower. Fifthly, listing up Wessex would force Wessex management to be more transparent and to work harder to improve company performance as it would come under scrutiny of a wider group of investors rather than just monitoring from YTLPI directors.

dragon328

1,997 posts

Posted by dragon328 > 2022-04-27 11:21 | Report Abuse

I understand that even if a subsi is listed, investors will still give a holding company discount to YTLPI but the discount will not be ridiculously big. Investors and analysts will be able to know exactly markets value each subsi and at most they will give a 30% discount for holding company.

For example, if Wessex was to be listed at 1.6x RCV or an equity value of RM18.7 billion, then a 30% discount would give a value of RM13.1 billion to YTLPI or RM1.59 per share of YTLPower. Now look at how much value CIMB analyst gives on Wessex to YTLPI - just a pathetic RM4.9 billion or an almost 75% discount to what could be worth RM18.7 billion.

dragon328

1,997 posts

Posted by dragon328 > 2022-04-27 11:28 | Report Abuse

And even more riduculous is for Maybank analyst to give zero value to PowerSeraya, the second largest power company in Singapore, just because PowerSeraya has made a few quarters of losses.
The analyst obviously does not understand the electricity market in Singapore and has no idea how much PowerSeraya would be able to make in coming years. Even if it made some small losses in past few quarters, but operational cash flows were still positive after adding back depreciation charges.
At least the analyst should give a value close to its net asset value or shareholders' value which is over SGD1.0 billion.

dragon328

1,997 posts

Posted by dragon328 > 2022-04-27 11:39 | Report Abuse

As for the data centre potential, no doubt Singapore has a bigger MNC base than Malaysia, but YTLPI has addressed this by pulling a fibre cable from Kulai to Singapore so that the MNCs based in Singapore will have no issue of linking with their data centre in Kulai. Johor Menteri Besar knows that well too as Johor has land closest to Singapore to grab a pie of the huge business potential.

10bagger10

1,007 posts

Posted by 10bagger10 > 2022-12-05 10:37 | Report Abuse

Mr dragon, is ytlp currently in net cash position?

10bagger10

1,007 posts

Posted by 10bagger10 > 2022-12-05 10:38 | Report Abuse

When will ytlp receive money from disposal for electranet?

dragon328

1,997 posts

Posted by dragon328 > 2022-12-09 19:41 | Report Abuse

10bagger10, I understand that YTLP has already received the cash from the disposal of Electranet. That is when I saw its net debt reduced by over RM2.0 billion as of 30 June 2022

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