YTL Corporation Berhad (KLSE:YTL) will look for acquisitions. YTL Corp. has proposed a bonus issue of up to 2.27 billion warrants, offering one warrant for every five existing shares held by its shareholders.
The warrants, which will be issued at no cost to shareholders, have an exercise price of MYR 1.50 per warrant - a 44% discount to the five-day volume weighted average price of YTL Corp.'s shares, which stands at MYR 2.661. Shareholders will have the flexibility to decide when to exercise their warrants during the three-year tenure, benefiting from potential future growth in the company. As of January 3, 2025, YTL Corp.
has an issued share capital of approximately MYR 3.51 billion, comprising 11.1 billion YTL Corp. shares, including 58.6 million treasury shares. While the bonus issue does not raise immediate funds, it provides YTL Corp.
with the potential to secure up to MYR 3.4 billion in gross proceeds if the warrants are fully exercised. These funds will be used to repay borrowings, particularly the MYR 46 billion in total borrowings the company had as of September 2024, which includes capital raised for acquisitions, investments, and operational needs. In addition, the proceeds will support YTL Corp.'s future projects, acquisitions, and investments, including potential ventures in its core business areas such as utilities, construction, and property development.
