KUALA LUMPUR, Sept 1 – Yinson Holdings Bhd will divest its entire offshore support vessel (OSV) business to Icon Offshore Bhd for RM160 million, to be satisfied by the issuance of 181.82 million new shares in Icon at 88 sen each.
Yinson said its wholly-owned unit Yinson Offshore Services Sdn Bhd had inked a binding term sheet with Icon to sell its entire 70 per cent equity interest and 100 per cent of the non-convertible redeemable preference shares in Regulus Offshore Sdn Bhd for RM124 million, as well as an ordinary share or 100 per cent stake in Yinson Camellia Sdn Bhd for RM36 million.
Regulus Offshore owns two anchor handling tugs and supply vessel and a platform supply vessel while Yinson Camellia owns an anchor handling tug and supply vessel, it said in a filing with Bursa Malaysia.
“(The disposals) would enable Yinson to focus on its floating, production, storage and offloading (FPSO) and energy transition business segments. The OSV business is a non-core business contributing less than one per cent to Yinson’s profitability and balance sheet,” it said.
In a media statement, Yinson said its minority stake and board seat in Icon will also allow it to participate in Icon’s future growth.
Group chief executive strategy officer Chai Jia Jun said that the group’s overarching business objectives drive this divestment and it has signaled to the market that it will undertake a series of initiatives to unlock value for its businesses.
“Regulus Offshore is one of our profitable legacy businesses and this transaction marks our biggest strategic decision since the last major investment back in 2015.
“Additionally, we believe this transaction will allow Yinson to ride the strong demand cycle in the OSV market and focus solely on our existing businesses,” he said.
Yinson’s portfolio will now include Yinson Production, Yinson Renewables, Yinson GreenTech, and Farosson, with the divestment exercise expected to be completed around Q1 of 2025, positively impacting Yinson’s financial year-end of 2025 earnings.
