KUALA LUMPUR: Ekuiti Nasional Berhad (Ekuinas) today announced its divestment of approximately 50.2% equity stake in oil and gas services provider ICON Offshore Berhad (ICON), held via its special purpose vehicle (SPV), to Liannex Corporation (S) Pte Ltd’s SPV, namely, Liannex Maritime Sdn Bhd (Liannex) for a total cash consideration of RM172.7 million, which will consequently result in a mandatory-take offer, as announced by ICON earlier today.
Liannex is a privately-owned enterprise that is owned by Lim Han Weng, a Malaysian, who is also Chairman and major shareholder of Yinson Holdings Berhad (Yinson), an energy infrastructure company listed on Bursa Malaysia. Yinson is a leading and well-established Malaysian oil and gas group with ownership and operational experience in floating production storage and offloading vessels (FPSO) as well as offshore support vessels (OSVs). Under his stewardship and given his track record and strong industry know-how, ICON is well-positioned to achieve its growth trajectory as a leading OSV provider in the region.
Datuk Syed Yasir Arafat Syed Abd Kadir, CEO of Ekuinas, said, “The decision to divest our majority stake in ICON was carefully premised on the current favorable market conditions coupled with the rare opportunity for Ekuinas to pass the baton to a highly credible and committed investor. With the investor’s track record and financial stability in the O&G industry, we consider the transaction to be a win-win opportunity, mutually beneficial for both Ekuinas and ICON shareholders. This strategic divestiture is certainly a reflection of our commitment to maximise shareholder value and one that leaves ICON in capable hands to chart their next level of growth.”
Following a debt restructuring exercise in 2018, Ekuinas reinvested in ICON to ensure the continued sustainability of its business. At end of FY2023, ICON completed a capital reduction and share consolidation exercise, effectively eliminating its retained losses and consolidating its shares by a factor of five times.
Ekuinas significantly exits its investment in ICON, after a holding period of more than 10 years, with a cumulative realized gain of over RM500 million derived throughout Ekuinas’ holding period. The transaction places Ekuinas as one of the few investors within the O&G sector to successfully realise its investment. Following the transaction, Ekuinas shareholding in ICON is reduced to approximately 5.8%.
ICON has established itself as an OSV provider in Malaysia and Southeast Asia. It primarily serves the Malaysian and Brunei coasts and has a total of 19 active OSVs. In FY2023, it recorded an active utilization rate of 75%, with an estimated orderbook of over RM300 million.
