If the shares are traded consistently there might be a chance that YTL

If the shares are traded consistently there might be

This preview shows page 4 - 6 out of 35 pages.

Corporation BHD is a marginal investor. If the shares are traded consistently, there might be a chance that YTL Corporation loses the controlling interest in its subsidiary. Instead, holding the shares would be the best choice for them as it ensures controlling interest as well as a return of dividends. Therefore, YTL Corporation BHD can be classified as a non-marginal investor. al%20Berhad-AnnualReport2017.pdf. 9 “Institutional Investor,” Investopedia, accessed April 21, 2018, . 10 “Identifying the Marginal Investor,” Finance Analysis, accessed April 21, 2018, - investor.html . 11 “YTL Power Annual Report 2017,” YTL Power International Berhad, accessed April 21, 2018, al%20Berhad-AnnualReport2017.pdf. 12 “YTL Power Annual Report 2017,” YTL Power International Berhad, accessed April 21, 2018, - AnnualReport2017.pdf.
Moving on, the third largest shareholder with a 6.25% holding is Cornerstone Crest SDN BHD. It is a wholly owned subsidiary of YTL Corporation BHD. The nature of the firm’s business is investment holding. 13 As such, it is a company bought over by YTL Corporation BHD to hold stocks on behalf of them. This type of company earns income from the payment of dividends, rent, or interest by owning shares of other companies and not through trading. Therefore, Cornerstone Crest SDN BHD can be inferred as a non-marginal investor of YTL Power International BHD. On the same reporting period, YTL Power’s fourth largest shareholder is Yeoh Tiong Lay & Sons Holdings SDN BHD. Based in Kuala Lumpur, it is a holding company which through its subsidiaries, operates hotels and resorts. Besides that, it owns and manages regulated utilities and infrastructural assets in Malaysia, Singapore, and the United Kingdom. 14 Yeoh Tiong Lay (YTL Corporation’s Managing Director) owns a part of his stake in YTL Power through Yeoh Tiong Lay & Sons Holdings SDN BHD. Although there is no information pertaining as to whether or not he is this holding company’s managing director, based on the name of the company, it is safe to assume that he has a large and influencing stake in this firm. Therefore, he can be classified as a company insider, and thus a non-marginal investor. This company is most likely just another firm which is used to hold shares of YTL Power. The next top 16 shareholders consist of 7 nominees, 4 trustees, 2 holding companies, and 3 fund management companies. Based on the figures given, it can be inferred that the significant portion of YTL Power’s shareholders are non-marginal investors which holds controlling interest in the firm and are just looking for dividend returns.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture