Yinson gets RM228m offer to divest logistics, trading assets

PETALING JAYA: Integrated offshore production and support services provider Yinson Holdings Bhd has received an offer from Liannex Labuan Limited (LLL) to purchase the non-oil and gas assets of the group for RM228 million.
LLL intends to acquire the entire stake in Yinson Corp Sdn Bhd, Yinson Transport Sdn Bhd, Yinson Shipping Sdn Bhd, Yinson Port Venture Pte Ltd, Yinson Vietnam Co Ltd and a 65% stake in Yinson Power Marine Sdn Bhd as well as the repayment of inter-company loans owing to Yinson by the target companies.
LLL is a special purpose private limited company incorporated in Labuan, Malaysia. LLL is principally an investment holding company owned by Yinson executive chairman Lim Han Weng and Bah Kim Lian, who are major shareholders of Yinson.
The acquisition exercise is subject to various conditions precedent, which includes satisfactory legal due diligence, approval from the board and shareholders of the group and respective approvals, consents, authorisation, permits or waivers of the relevant authorities.
Lim said it is the group's plan to streamline its business operation and be a full-fledged oil and gas player within the industry.
"Our long-term objective is to develop the group into the most profitable global FPSO (floating production storage and offloading) player. We look forward to working together with our employees and stakeholders in achieving this goal," he said in a statement yesterday.
With the proceeds from the sale of the group's non-core assets reinvested, into more lucrative oil and gas projects with higher project internal rate of return.
"In addition the divestment can enable the group to achieve a firmer valuation among the oil and gas peers. Subsequently, the additional capital will improve the group's gearing headroom for growth."
On June 25, 2015, Yinson had announced a proposed private placement to raise up to RM300 million.