HONG KONG (AFX-ASIA) – CLP Holdings Ltd (2.HK) said indirectly-owned unit CLP Power Projects (Malaysia) Ltd has agreed to sell its entire 5% interest in YTL Power International Berhad (6742.KL) to YTL Corp for a total consideration of RM320.985 million, or RM2.75 per share. (US$1=RM3.8).

It said in a statement that the deal is subject to the formal approval of the Malaysian Foreign Investment Committee.

Separately, YTL Corp Bhd said it is exercising its pre-emption rights to buy 116.721 million shares or 5.16% of YTL Power International Bhd from CLP Powers Projects (M) Ltd for RM320.985 million or RM2.75 a share.

YTL Corp said the purchase represents good value and will raise its interest in YTL Power to 60.41%.

It added that it will be financing the acquisition from internally generated funds.

YTL Corp said CLP Power International Limited (CLP-PA) had bought the YTL Power shares in 1999 as part of its plan to team up with YTL Corp to bid for Tenaga Nasional Berhad’s power generation assets. After Tenaga Nasional called off the sale, CLP-PA has re-focused its investment strategy on other markets in the Asia Pacific region.

The agreement to sell its shareholding in YTL Power is part of that decision.

YTL Corp said the acquisition will not have any material impact on its earnings and net tangible asset per share.