Yinson to sell stake in West African unit

PETALING JAYA: Yinson Holdings Bhd has proposed to dispose of its 26% stake in Yinson Production (West Africa) Pte Ltd (YPWAPL) to a consortium of Japan incorporated companies for US$104 million to US$117 million (RM447.2 million to RM503.1 million), subject to adjustments and contract.

In a statement yesterday, the group said it has entered into a heads of agreement (HoA) withSumitomo Corp, Kawasaki Kisen Kaisha Ltd, JGC Corp and Development Bank of Japan Inc for the stake disposal.

Yinson said the agreement was entered with the understanding of both parties in forming a collaboration through YPWAPL in relation to the contract for the chartering, operation and maintenance of a floating production, storage and offloading (FPSO) facility by Eni Ghana Exploration and Production Ltd (Eni Ghana) at Offshore Cape Three Point Block in Ghana.

The FPSO, named as FPSO John Agyekum Kufuor, produced its first oil on May 22, 2017, it noted.

Yinson said it believes that the entry of these shareholders into YPWAPL will enable the parties to form a long-term relationship, which then allows each member to tap into the rests’ expertise and background.

In addition, it said such collaboration will help in fortifying the group’s footprint in the FPSO industry.

“This collaboration with the Japanese consortium is another excellent news for the group, following our recent celebration of FPSO JAK’s first oil production three months ahead of schedule, as announced on May 22, 2017,” its group executive chairman Lim Han Weng said.

Yinson’s share price lost 6 sen or 1.64% to RM3.60 yesterday, with some 963,900 shares changing hands. Its market capitalisation stood at RM3.885 billion.