YTL's offer for NSL is at discount to 12-month VWAP, intends to keep NSL listed.

On Oct 11, RHB, on behalf of YTL Corp, dispatched the offer document for a mandatory general offer (MGO) for NSL N02. The offer is at 75 cents per share. The pre-conditional MGO, subject to a condition precedent, had already been announced on July 23. Although the offer price represented a premium of 10.13% to the one-month volume-weighted average price (VWAP), the offer price is a 14.34% discount to the 12-month VWAP of 87.56 cents.

NSL is an investment holding company whose principal activities are mainly the manufacturing and sale of building materials, oil and petroleum-related products, and the provision of environmental services. YTL and its concert parties own around 81.24% of NSL, the equivalent of 303.48 million shares. 

According to the offer document, the acquisition provides an opportunity for YTL Corp to expand into the industrialised building system sectors in Malaysia, Dubai, Finland and Singapore. The precast concrete businesses in Malaysia and Singapore are synergistic to YTL Corp’s cement business and are expected to facilitate the speed of construction required in rapidly expanding economic segments such as the data centre industry.

YTL Corp has no intention of exercising its right of compulsory acquisition under Section 215(1) of the Companies Act, should such right be available to it, and intends to keep the NSL listed. NSL's share price closed at 74 cents on Oct 11, down 3.25% this year. 

The offer closes at 5.30 pm on Nov 8.