Who got the money? I mean CASH!!!! You guess.
Of course, YTLPower.
The intention of YTLPower to acquire the previously mentioned power plants.
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Since this is not a surprise, I wouldn't hope much changing in YTLPower target price.
I call a BUY on YTLPower on a target price of RM3.00, a potential 25% upside based on the closing price of RM2.39 yesterday.
Usually, YTL's practice is to secure facilities in the form of bonds, loans, warrants, etc instead of using the cash in hand or treasury shares to sufficiently funding projects/acquisitions. Pros and cons. You can expect to see marginally higher assets leverage of YTL in the future. Good, I like it.
YTL Power open to buying plants in Singapore
KUALA LUMPUR: YTL Power International Bhd. is open to buying power plants in Singapore, its managing director said Tuesday.
YTL Power was interested in investing in all types of infrastructure projects, "especially in stable countries like Singapore,'' Francis Yeoh said on the sidelines of an economic conference.
His remarks follow a recent move by Singapore's state-owned investment company, Temasek Holdings Pte. Ltd., to revive the sale of three domestic power generation companies, possibly in the next 12 to 18 months.
The companies - PowerSeraya Ltd., Senoko Power Ltd. and Tuas Power Ltd. - supply about 90 percent of Singapore's power and have a combined generation capacity of 9,070 megawatts.
Sale of the companies has been delayed several times since 1998.
In 2002, analysts estimated the companies were worth about 2 billion Singapore dollars (US$1.3 billion; euro0.97 billion) each.
Outside Malaysia, YTL Power - a subsidiary of YTL Corp. - has power generation assets in Indonesia. - AP
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