2. YTLPOWER - hng said...
Agreed, YTL power sell off its power plant to 1MDB is best solution to no only get rid of political risk, but realize value on its power plant.
Based on 1212MW, fixed assets: 990m and profit 250m, the selling price could be worth RM 5-6b.
The amount is derive from mixed formula: RM 4.6m/MW; 20x PE and 5.8x fixed power asset est RM990m.
The above parameter is based on 1MDB acquire Genting Sanyen.
Conservatively,lets assume the power plant sell at RM5b, YTL Power should be able to recognized around RM4b net gain, translate to increment of 55sen/share.
YTL Power could then opt for special dividend or capital repayment via par value reduction from 50sen to 10sen.