25 March 2002

 

Wessex Water acquired by YTL Power International

An agreement was announced today for Wessex Water to be acquired by YTL Power International ("YTL") for an enterprise value of £1,239.5 million.

YTL is a large Malaysian energy group with investments in regulated utilities in Australia.

This acquisition will further YTL's strategy of creating value through its focus on utility asset management and provides a platform for the future development of the group's presence in Europe.

Francis Yeoh, managing director of YTL, said: "We are delighted to have concluded this deal and we look forward to working with the management and employees of Wessex Water who have already achieved great things.

"Wessex is recognised as one of the best run companies in the water industry which will enable us to create value for our shareholders as well as continuing to provide high standards of customer service."

The deal ends months of uncertainty for Wessex Water since its parent Azurix announced that it was exploring a sale of the company.

YTL will work with the management of Wessex Water to continue its excellent track record. Proposals will be developed to enable management and staff of Wessex Water to become investors in the company.

Wessex Water chairman Colin Skellett emphasised that it is still very much business as usual. He said: "We are delighted to welcome YTL with their long term commitment to Wessex Water. This deal will bring stability and certainty to Wessex Water.

"We can now put the uncertainty of the last few months behind us and focus on continuing to deliver first class water and sewerage services to our 2.5 million customers."


Wessex Water
Wessex Water supply drinking water to around 1.2 million people in 513,000 properties and sewerage services to 2.5 million people.
Wessex Water is the regional water and sewage company providing water supply and sewerage services across an area of the south west of England covering 10,000 square kilometres including Dorset, Somerset, Bristol, Bath, most of Wiltshire and parts of Gloucestershire and Hampshire and has been rated by the industry regulator Ofwat to be one of the most efficient operators in the sector.


YTL
YTL Power International is a Malaysian incorporated company listed on the Kuala Lumpur Stock Exchange. Its principal shareholder is YTL Corporation, also listed on the KL Stock Exchange. YTL is one of the largest companies in Malaysia with interests in power generation, construction contracting, cement manufacture, property development and hotels, resorts & leisure.

YTL is one of the largest independent power producers in South East Asia. The company is a major multinational player in utilities and infrastructure and has considerable understanding of operating in a regulated environment through its co-ownership of the electricity transmission grid of South Australia.

YTL group has also diversified into the education sector via a joint venture with the University of Nottingham to establish a branch campus of the University in Malaysia. YTL also developed the £500 million Express Rail Link between Kuala Lumpur and its new airport.