YINSON Holdings Bhd has proposed the disposal of a minority interest in a subsidiary operating a floating, production, storage and offloading (FPSO) ship in Brazil for US$49 mil (RM208.91 mil).
Yinson Acacia Ltd, a wholly owned subsidiary of Yinson, would sell a stake in Yinson Boronia Consortium Pte Ltd to Japanese transportation and shipping giant Kawasaki Kisen Kaisha Ltd.
Yinson Boronia is a recipient of contracts from Brazil’s Petrobas for the provision of the Marlim 2 FPSO.
Completion of the transaction is subject to final acceptance of the FPSO as well as the FPSO achieving stable operations which is expected to be met in 2023, Yinson Corp said in a bourse filing today.
The number of sale shares will be determined after taking into consideration the financing arrangement of Project Marlim and based on valuation principles set out in the share sale purchase agreement.
“For illustration purposes only, and based upon assumptions of the final financing arrangement, the indicative number of Sale Shares represents approximately 8.5%-10% equity interest in Yison Boronia,” it said.
Yinson Acacia currently has a 75% shareholding in Yinson Boronia while the remaining 25% is held by Sumitumo Corp’s Japan Offshore Facility Investment 1 Pte Ltd.
According to Yinson, the disposal will allow the group to partially monetise its investment in Yinson Boronia and free up financial resources at an early stage in project Marlim to expand and bid for future projects.
“It 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,” it added.
Kawasaki Kisen Kaisha is a publicly listed company incorporated in Japan that owns and operates a fleet of 468 offshore vessels.
Yinson’s shares were down 0.5% at RM6.01 after the midday break today. – July 9, 2020
