“Upon completion, SIPP Power’s direct shareholding in Ranhill Utilities will increase to about 34.32% from 2.90%.

“This will subsequently trigger an unconditional mandatory takeover offer (MTO) to acquire all the remaining shares in the water supply services provider,” it said in a filing with Bursa Malaysia.

YTLPI said SIPP Power has entered into an unconditional share purchase agreement with major shareholder Hamdan Mohamad, Hamdan Inc (Labuan) Pte Ltd, and Hamdan (L) Foundation for the proposed acquisition.

“Collectively with YTLPI, their aggregate direct shareholding in Ranhill Utilities will increase to about 53.19% from 21.77%,” it said.

YTLPI said the proposed acquisition and the MTO will be funded via internally generated funds.

“Barring any unforeseen circumstances, the proposed acquisition is expected to be completed in June 2024, while the MTO is expected to be completed by the third quarter of 2024,” it said.

YTLPI said the acquisition represents an opportunity to acquire a mature business, operating in segments closely correlated with the group’s existing core competencies, and complementing its utilities portfolios, both geographically and operationally.

“The transactions will contribute positively to the future financial performance of the group,” it said.

“Trading of YTLPI and Ranhill Utilities’ shares on Bursa Malaysia, which was halted since 9am this morning pending an announcement, will resume at 2.30pm today,” both companies said in their Bursa filing.

Yesterday, YTLPI ended the trading day one sen higher at RM4.96, while Ranhill Utilities ended 12 sen higher at RM1.57 per share.