Managing director Tan Sri Francis Yeoh said its current balance sheet position and promise of higher dividends from its subsidiaries has put it in a position to be able to look at mergers and acquisitions efficiently.
He expects subsidiaries such as YTL Power International Bhd and YTL Cement Bhd to announce some RM1 billion dividends to its parent for the financial year ending June 30 2011.
YTL Land & Development Bhd is expected to start paying dividends next year after wiping out its losses.
"With the cash I have today, I can buy back my subsidiaries. This is my signal also. If I have nothing to buy, I will buy my own subsidiaries to get the dividends," Yeoh told reporters after its extraordinary general meeting yesterday to gain approval for a stock-split exercise.YTL Corp has an unencumbered cash pile of about RM12 billion.
"From now on, in a year or two there will probably be some very interesting opportunities. We will concentrate on infrastructure kind of business, water, electricity, transportation ... those kind of businesses that we are familiar with, expanding our cement footprint. It will work to add more layers of sales and profits to the group," Yeoh said
With the strengthening of its balance sheet, YTL Corp can do some "sizeable" acquisitions, he said.
YTL Corp shareholders agreed to a stock split which would see it receive five RM0.10 shares for every RM0.50 share in the company.
The share-split is to make its stock more tradeable and in the hopes that it would help boost its market capitalisation.
Prior to the stock split, YTL Corp's free-float of shares stood at about 30 per cent. Post-exercise, it is envisaged that it may go up to between 35 per cent and 40 per cent.
This would bring it closer to the average spread of free-float in the Malaysian capital market, which is between 40 per cent and 45 per cent. - By Presenna Nambiar of btimes.com.my
No comments:
Post a Comment