Taking YTL Cement Private

 Beginning to be a bird of prey

I wonder whether the reason given by YTL Corp to take YTL Cement private via a share swap can hold water.

Just read the reasons given:

Firstly, relatively low trading activity of the YTL Cement counter.

Secondly, a new platform for YTL Cement shareholders to maximise investment value through YTL Corp shares through improved liquidity.

So what is the modus operandi?

YTL Corp acquires all equity interest in YTL Cement including all outstanding irredeemable convertible unsecured loan stocks.

In return-YTL Corp shares to be issued to YTL Cement holders at RM1.42 sen each.

To motivate YTL Cement shareholders, YTL Corp went up 8 sen today to RM1.54. 

I would expect YTL Corp shares to be priced beyond RM1.57 sen for the swap offer to be convincing.

Less one on the Bursar?

The current price is about the price when YTL Corp went ex-split to 5 shares of 10 sen each for every 50 sen shares held about  a couple of months back.

So, with that, YTL Cement will be the first YTL counter to be taken private.

So, what about YTL Power? Will that be next?