YTLPower- Possible Privatisation Target

BROKER CALL - Malaysia's YTL Power undervalued, privatisation target - TA
21/05/2007 15:54:00
KUALA LUMPUR (XFN-ASIA) - YTL Power International Bhd shares have been
undervalued by the market, making the company one of the potential takeover
targets on the local bourse, said TA Research.
"In a recent meeting, its major shareholder has hinted that privatisation of
YTL Power is a possible option if the market continues to undervalue the stock,"
said TA in a note to clients.
YTL Power's share price at current levels does not reflect the fact that the
company provides a steady stream of cash flow to the tune of 900 mln rgt yearly,
it noted.
YTL Corp owns a 57.69 pct stake in YTL Power, according to the company's 2006
annual report.
Besides, there is a good chance for it to become a KLCI component stock that
will increase the appetite for YTL Power among institutions and funds that tract
the benchmark index, said TA.
As a result, the company has a greater chance to benefit from the further
appreciation of the ringgit, triggered by China's latest move to allow a wider
trading band for its yuan, it added.
At 3.32 pm, YTL Power was down 0.03 rgt or 1.21 pct at 2.44, while YTL Corp
gained 0.25 rgt or 2.96 pct to 8.70.

Source: osk wirenews