Posted by Leong Boon Wei > 2015-09-07 11:10 | Report Abuse

Thanks fairnreasonable. That is something to think about.

Posted by leek > 2015-09-07 16:19 | Report Abuse

Ermm... i don't think cash dividend will affect the warrant exercise price... because it doesn't result in increasing number of shares... unless it is share dividend... but cash dividend technically can affect the mother's price...

Posted by leek > 2015-09-07 16:23 | Report Abuse

As long as the company has a long term cash dividend plan, it can attract foreign/institution buyers to buy and hold for steady income... which will result in higher share price = higher warrant price...

Posted by leek > 2015-09-07 16:28 | Report Abuse

I buy YTL for possible cash and share dividend.... Yeoh family will only reward YTL's shareholders... then follow by YTLP.... don't bother about ytle, ytlland... unless they drop to very low price....

Posted by leek > 2015-09-08 14:59 | Report Abuse

http://www.nst.com.my/news/2015/09/%E2%80%981mdb-may-seal-power-asset-sale-few-weeks%E2%80%99?m=1

Guess who will win... :) :)

Posted by smartly > 2015-09-08 15:24 | Report Abuse

aiyo, dealing with 1mdb !!! suicide !?

Posted by leek > 2015-09-08 15:53 | Report Abuse

Haha... the power assets are solid/hard assets... cannot simply mark up... plus many of the power plants have been or will be given extension on contract in Malaysia under the proposal... my only worry is the cash level of YTLP.. but with the support from YTL and YTLP's overseas business, worth taking the risk...

Posted by leek > 2015-09-08 17:30 | Report Abuse

EPF no place to park their money... start parking more at YTLP already... lolz

Posted by smartly > 2015-09-09 09:58 | Report Abuse

no more sbb :(
if resume sbb, son will fly again.

Posted by leek > 2015-09-10 16:34 | Report Abuse

Huatt ah

Posted by smartly > 2015-09-11 14:45 | Report Abuse

fairnreasonable, did you managed to reduce your cost price on wb after you have converted to mother to earn the 10sen div previously ?

Posted by fairnreasonable > 2015-09-11 18:24 | Report Abuse

Smartly, since you asked, I am pleased to share my calculation with you on my reason going for conversion, taking advantage of dividend and then buying back the warrants.

My cost of conversion is fixed at RM1.14.

Assuming that I sell YTLP at RM1.53 (ex-price) after profiting from the dividend, the total sum I will receive = (RM1.53 + RM0.10) = RM1.63. Take away my conversion cost, I will receive (RM1.63 – RM 1.14) = RM 0.49 for my warrants used for the conversion.

With mother share at RM1.53 post-ex, and assuming that the warrants stay at 2 sen discount to the mother (a peculiar feature of YTLP), I should be able to buy back my warrants at a price of (RM1.53 – RM1.14 – RM0.02) = RM0.37. This is to say that I expect to be able to buy back my warrants at RM0.37 post-ex.

From the above calculation, I expect to receive RM0.49 for the whole exercise of conversion of each warrant. My effective cost for the new warrants to be bought from the market will be only RM 0.25.

In summary, my effective holding cost for my replacement warrants could be reduced by RM 0.12 if I take the trouble to convert to mother share and take advantage of the attractive dividend. The risk is minimal since I end up with the same holding of warrants. Of course, we need to have about a month of working cash of RM1.14 for each warrant conversion. Note that trading costs have not been taken into consideration.

If we hold on to warrants without conversion, we are likely to see our warrant price drops back to RM0.37, based on the calculation above and the assumptions used.

I hope this calculation is sensible

Posted by fairnreasonable > 2015-09-11 18:37 | Report Abuse

Another way of looking at the above calculation:
By going through the conversion exercise, I get value for each warrant of RM 0.49.
If I do nothing, my warrant could be RM 0.37 post-ex.
There is a difference of RM 0.12.

Posted by smartly > 2015-09-12 12:53 | Report Abuse

ok. above working base on assumption subject to YTLP to be able to sell at 1.53 ex-price & buy back wb at 0.37sen.
a viable move but need to fork out a lot of cash if one holding enormous units of wb.
how many time you have been practicing this ? manage to recoup all your losses ? if this is the 2nd time you did this, do you think you end up with profit right now ?
thanks for sharing...

Posted by fairnreasonable > 2015-09-12 15:23 | Report Abuse

Smartly, the main consideration here is that Wb price will drop post-ex.
Wb holders will lose out if they take no action.

My previous calculation will yield more or less the same result, even if post-ex YTLP price go down to 1.50. So long as Wb is still not at a premium it could be bought back at a much lower price.It is the relative figures/prices that matter.

Another way to mitigate the possible loss is to sell Wb pre-ex, say at 0.44, and buy back post-ex, say at 0.37. Due to the 0.10 dividend, there must be a gap in Wb price pre- and post- ex.

I didn't and don't have enormous holding and hence my action didn't and won't impact on market price of YTLP and Wb.

Last year I did hold some 7-figure Wb which I didn't have enough cash for conversion. I sold some Wb pre-ex to top up the cash for conversion. The method worked for me.

Taking the dividend I had, overall I am no longer making a loss in YTLP/Wb.

I still want to stay invested in YTLP through holding of Wb. As no premium is payable for Wb and the gearing ratio is quite large, I think Wb is a more profitable way to invest in the future of YTLP over the next 2 - 3 years. Hopefully there is a breakout soon.

I am not a trader and hence not savvy at taking advantage of short-term price fluctuation.

Posted by smartly > 2015-09-12 17:02 | Report Abuse

YTLPower: It may have won the London arbitration for an estimated rm700 million from Petronas and secured a short extension for its Paka power plant, but finalizing both may not be so simple.

Petronas has filed an application with the High Court to review the arbitration. If this action is successful, it may result in further arbitration to decide on the award of damages.

At the sametime, it is understood that YTLPOWER has not yet been able to renew its gas and supply agreement (GSA) with Petronas, for the extension of the Paka plant’s power purchase agreement. Sources say that YTLPower has not been able to do so.

YTLPOwer’s PPA for the 808MW comnined cycle gas turbine power plant in Paka, Terengannu, will expire on Sept 30 2015.

It is important to note that Petronas has a virtual monopoly on gas supplies in Malaysia, and YTLPower has no other alternative. Furthermore, there shoudd be any dispute over pricing, as all fuel costs are passed through to TNB.

Also note that TNB cannot afford to lose the generation of capacity of Paka due to the dalys in several large power plant projects.

The delay in signing the GSA is concerning, but this would not be the first time YTLPOWEr would find itself at odds with Petronas.

The two companieas are in dispute over an estimated rm700 million that YTLPOWER is claiming for overpayment of gas supplies for its power plant concessions.

However at a time when oil prices are low and the govenrment needs high dividends, it may be difficult for Petronas to fork out the money.

Posted by smartly > 2015-09-12 17:03 | Report Abuse

does not sound good though

Posted by singh1 > 2015-09-14 05:15 | Report Abuse

The best solution will be Petronas supplying gas and deducting payment from money it owes to YTL power. That way they don;t have to fork out lump sum. Win Win for both parties. For how long they have to do that to use up the 700 million credit would be the question.Power rates should also go variable so as to reflect on changes in price of gas and other fuels in use. End the subsidy system just as being used for petro prices at the pump.

Variable price means no future disputes between Petronas and power producers.

Posted by smartly > 2015-09-15 14:46 | Report Abuse

the more wb converted the lesser the units.
this will make wb very responsive.

Posted by leek > 2015-09-17 17:29 | Report Abuse

1.70 lai liao

Posted by smartly > 2015-09-17 17:32 | Report Abuse

leek, sure boh ?

Posted by smartly > 2015-09-17 17:32 | Report Abuse

leek, faster convert your wb

Posted by smartly > 2015-09-17 17:33 | Report Abuse

else yr wb got no div

Posted by imoogi99 > 2015-09-17 22:18 | Report Abuse

With the yearly dividend given by ytlpower, funds are collecting now.

Posted by leek > 2015-09-18 16:35 | Report Abuse

Son is son, mom is mom... dun mix around smartly...

Posted by smartly > 2015-09-21 11:25 | Report Abuse

son is son, this son can be mom. :p
by forking out 1.14 conversion rate

Posted by Sebastian Sted Power > 2015-09-22 17:04 | Report Abuse

EPF keep disposing. 6% div also don't wan wait

Posted by takashi86 > 2015-09-22 20:36 | Report Abuse

i think this coming september quarter report shall show a 7-8% increase in revenue due to sharp depreciation of MYR to GBP,SGD & USD.

Posted by smartly > 2015-09-23 11:23 | Report Abuse

3.6m wb exercised.

Posted by smartly > 2015-09-23 15:45 | Report Abuse

mom up son down. :p

Posted by leek > 2015-09-29 14:58 | Report Abuse

Huatt lai liao

Posted by cgtan2020 > 2015-09-29 16:39 | Report Abuse

Leek: buy more WB?

Posted by smartly > 2015-09-29 16:40 | Report Abuse

don't buy wb anymore, too late to convert now.

Posted by smartly > 2015-09-29 16:44 | Report Abuse

mom up! huat liao

Posted by leek > 2015-09-29 16:52 | Report Abuse

Buy wb because of its low price... not because of converting to be ytlp...

Posted by leek > 2015-09-29 16:52 | Report Abuse

Keep buying babe

Posted by smartly > 2015-09-29 16:54 | Report Abuse

back to 1.59. lol

Posted by cgtan2020 > 2015-09-29 17:01 | Report Abuse

leek: must be cheap la... ozzy to rm. :)

Posted by cgtan2020 > 2015-09-30 10:12 | Report Abuse

Just some thought on the Yeoh's Family move

1. Any other possible rational behind the WB conversion beside the 10 cents dividend?
2. Increase the Yeoh’s family and YTL Corp the shareholding from 63 percent to 65.8 percent, possible corporate exercise?
3. Possible to be include in FBMKLCI with the enlarge capital of 8,062,019,271 shares at Rm1.5 = Market Cap of RM12,093,028,907.00
UMW 8.85B, SKPetro 11.205B

Posted by smartly > 2015-09-30 11:08 | Report Abuse

ytlp got ump..

Posted by smartly > 2015-09-30 11:09 | Report Abuse

huat lai liao

Posted by smartly > 2015-09-30 13:27 | Report Abuse

The Energy Commission (EC) has some strings attached to the renewal of YTL Power International Bhd’s power purchase agreements (PPAs) for its electricity generation plants in Paka, Terengganu and Pasir Gudang, Johor.

The commission had yet to renew YTL Power’s PPAs as the latter needs to fulfil certain conditions before the renewal is granted.

One of the conditions is for YTL Power to resolve the land issues with TNB as the IPP plants are built on the latter’s land.

YTL Power needs to iron out several issues in order to seal a PPA with the EC. But the renewal is unlikely to be left in limbo.

The extension for some existing power plants is a stopgap measure taken by the EC to make up the supply shortage caused by the delay of the completion of the new power projects, for instance Project 3B, which has been taken over by TNB from 1Malaysia Development Bhd. New capacity is expected to only come on stream in 2019.

It was reported that IPP is having difficulty in securing gas supply from Petroliam Nasional Bhd (Petronas) — one condition that YTL Power has to meet. It is learnt that YTL Power has yet to sign the gas supply agreement with Petronas.

To recap, the two companies are in dispute over an estimated RM700 million that YTL Power is claiming for overpayment of gas supplies for its power plant concessions. YTL Power has won the London arbitration for the lump sum, but the national oil firm is said to have filed an application with the High Court to review the arbitration.

Given the legal tussle, it is hard to imagine the seal of a gas supply agreement between the two parties.

The PPA for the power plant in Paka is going to expire on 30 Sept 2015. However, YTL Power has been granted an extension for two years and 10 months without renewal of the PPA.

Posted by leek > 2015-09-30 14:31 | Report Abuse

Buy now.... YTLP immediate TP....2.00....

Posted by mamakkutty > 2015-09-30 14:47 | Report Abuse

Sell....

Posted by smartly > 2015-09-30 16:19 | Report Abuse

huat lai liao

Posted by smartly > 2015-09-30 16:26 | Report Abuse

son already reflected as post div price but mum still going strong

Posted by smartly > 2015-09-30 16:27 | Report Abuse

28m wb exercised.

Posted by smartly > 2015-09-30 16:28 | Report Abuse

wow. huge # ! mum is flooded with ton of shares now.

Posted by smartly > 2015-09-30 16:32 | Report Abuse

those did not do conversion rugi besar...

Posted by smartly > 2015-09-30 16:57 | Report Abuse

finally closed above 1.60