KUALA LUMPUR, July 9 — Yinson Holdings Bhd’s indirect wholly-owned subsidiary, Yinson Acacia Ltd (YAL) is disposing a minority equity interest in Yinson Boronia Consortium Pte Ltd (YBC) to Japan’s Kawasaki Kisen Kaisha, Ltd (K Line) for US$49 million (RM208.74 million) in cash.
In a filing to Bursa Malaysia today, Yinson said YAL has executed a share sale and purchase agreement (SSPA) with K Line for the proposed disposal.
It said the number of sale shares will be determined prior to the completion date, taking into consideration the financing arrangement of Project Marlim and based on valuation principles set out in the SSPA.
“For illustration purposes only, and based upon assumptions of the final financing arrangement, the indicative number of sale shares represents approximately 8.5 per cent to 10 per cent equity interest in YBC,” it said.
Together with Sumitomo Corporation, the company had secured Project Marlim in October last year, which entails the charter, operations and maintenance of Marlim 2 FPSO, a floating, production, storage and offloading (FPSO) vessel for the Marlim revitalisation project in Brazil.
Yinson said the proposed disposal will allow the group to partially monetise its investment in YBC at a price that commensurates with the risk and rewards of both parties, and free up financial resources at an early stage in Project Marlim to be utilised to expand and bid for future projects.
The exercise will also enable the group to continue participating and benefiting from the prospects of the Marlim 2 FPSO, as YBC will still remain as a subsidiary of the group after the proposed disposal.
“Additionally, the proposed disposal strengthens the company’s relationship with K Line, that already holds an indirect equity stake in FPSO John Agyekum Kufuor.
“K Line’s participation will mark the entry of a second strategic investor in Project Marlim, alongside Sumitomo Corporation,” it added.
In addition, its proforma consolidated net assets are expected to increase from the proposed disposal, thus enhancing the financial position of the group.
The gearing ratio of the company will also decrease, thus providing some financial flexibility and debt headroom for future expansion. — Bernama
