Why YTL WR?
- negative premium to the YTLpower WB at such a discount!!
- YTLpower now at PE 9 +- with dividend 5 %, currently almost at year low!! EPS sustained!
- what do you think? Fundamentally sound! yeah! Don't Miss this!!
YTL-WR active ahead of Tuesday’s 5pm last trading deadline
Business & Markets 2012
Written by Cindy Yeap of theedgemalaysia.com
Monday, 08 October 2012 15:28
KUALA LUMPUR: Renounceable rights to buy YTL POWER INTERNATIONAL BHD  warrants (YTL-WR) given to YTL Corp Bhd shareholders at 20 sen a piece continued to be actively traded ahead of Tuesday’s deadline to sell them for a quick arbitrage profit.
At 2.57pm, YTL-WR was up one sen to 19.5 sen with over 24.4 million units done — the day’s second most active.
Simply put, YTL-WR allows the holder the chance to buy at 20 sen apiece YTL Power International warrants (YTLPOWER-WB), which was selling for 42 sen in the open market at 2.57pm.
This means that at 19.5 sen, an investor buying 100,000 YTL-WR could potentially make about RM2,500, excluding brokerage fees, using YTLPOWER-WB's value of 42 sen currently.
YTL Corp is offering up to 733.08 million of YTL-WR to its shareholders on the basis of one warrant for each 15 YTL Corp shares held on Oct 2, rights for which are being sold to profit in the difference between the 20 sen exercise price and the value of YTLPOWER-WB in the open market.
YTL-WR will cease to trade at 5pm Tuesday, according to a YTL Corp prospectus dated Oct 2 on the renounceable offer.
The value of the renounced rights had come off from as high as 27 sen apiece intra-day on Oct 3 when YTL-WR first started trading. This corresponded with the decline seen in the value of YTLPOWER-WB in the open market to 42 sen currently compared with 48 sen on Oct 2 before the renounced rights (YTL-WR) began trading.
YTLPOWER-WB, which expires in June 2018, has a RM1.21 strike price and one-to-one conversion ratio. YTL Power mother shares are going for RM1.61 apiece currently.