Shareholders of YTL Corp Bhd and YTL Power International Bhd have overwhelmingly approved bonus warrant issuances, paving the way for both companies to raise billions in potential capital. The corporate exercises, which received near-unanimous support, will grant investors one free warrant for every five existing shares held.
The voting results showed strong backing, with YTL Corp securing 98.61% approval and YTL Power gaining 99.36% support. The warrants will be issued at discounted rates—20.63% below YTL Corp’s closing price of RM1.89 and 27.30% below YTL Power’s RM3.37 share price as of Monday. Holders can convert these warrants into shares at fixed prices over a three-year period.
YTL Corp’s issuance of up to 2.27 billion warrants could generate RM3.4 billion if fully exercised, while YTL Power’s 1.67 billion warrants may raise RM2.2 billion. The warrants, however, will not be tradable on the open market. Bursa Malaysia has already approved the listing of new shares resulting from the conversion.
The move strengthens the financial position of both firms, with YTL Corp maintaining a 54.94% stake in YTL Power. The bonus warrants provide shareholders with an opportunity to increase their holdings at favorable terms while injecting fresh capital into the companies.