The deal is worth up to RM63.8 million, reports the Nikkei Asian Review.

Under the proposed deal, minority shareholders of YTL e-Solutions will receive 0.333 share of YTL Corp priced at RM1.65 a piece for each share of the information technology company, according to stock exchange filings.

YTL Corp currently owns 997.1 million shares, equivalent to 74 per cent stake, in the wireless broadband network operator.

De-listing YTL e-Solutions will allow full consolidation of the two businesses. This will “create a more cohesive and efficient operating structure going forward,” the parent YTL Corp told the stock exchange.

It will also provide YTL e-Solutions shareholders an opportunity to own YTL shares that are more liquid, the report quoted the company as saying.

In the January-March quarter, YTL e-Solutions’ made a net profit of RM8.9 million, relatively unchanged year-on-year while revenue slipped 4.9 per cent to RM21 million from a year earlier.

Fiscal nine-month net profit fell 3.9 per cent to RM26.8 million while revenue was down 4.1 per cent at RM63.8 million, the report said.

Shares of YTL Corp have risen about 7 per cent so far this year compared with YTL e-Solutions’ 0.9 per cent year-to-date gain and the benchmark FTSE Bursa Malaysia KLCI’s 0.3 per cent loss.

YTL Corp ended on Tuesday down 0.6 per cent at RM1.68 while YTL e-Solutions declined 1.8 per cent at RM0.535.

Shares of YTL e-Solutions have been listed on the Malaysian stock exchange since 2002 though trading activity remained tepid with average monthly traded volume of 3.6 million shares in the past two years, according to the Nikkei Asian Review.

That compares to YTL Corp’s monthly trading volume of 143.7 million shares over the same period.