Short-term profit headwinds expected after Ezion deal

Proposed outlay: Yinson expects the cash outlay for the deal to be about US$200mil for a 70% stake in Ezion.

PETALING JAYA: Yinson Holdings Bhd is expected to face some earnings headwinds in the short run should the deal to buy loss-making Singapore-based liftboat operator Ezion Holdings Ltd go through, says Maybank Investment Bank Research (Maybank IB).

It pointed out that under the deal, Yinson would have to realise US$400mil in negative goodwill and its net gearing level would rise to 0.9 times from 0.5 times currently, on a proforma basis.