PETALING JAYA: Yinson Holdings Bhd
’s offshore production business, Yinson Production, has entered into a definitive agreement with a consortium of investors to issue US$1bil in redeemable convertible preferred shares (RCPS) and 10% warrants at a post-money valuation of US$3.7bil.
In a statement, Yinson Holdings said the consortium of investors comprised Platinum Lily B 2024 RSC Ltd, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and funds managed by British Columbia Investment Management Corp (BCI) and RRJ Group.
“The agreement provides the option to issue additional RCPS of up to US$500mil within 24 months from closing, subject to agreement.
The proceeds from the transaction will primarily support Yinson Production's further growth, whilst US$200mil will be used to further expand the group’s renewable energy and green technologies businesses, as well as for distributions to shareholders of Yinson Holdings through share buy-backs and/ or dividends.
Yinson Group chief executive officer Lim Chern Yuan said he was pleased to welcome ADIA, BCI and RRJ as new investors in Yinson Production.
“This landmark transaction comes at a pivotal juncture for Yinson, allowing Yinson Production to capture the great opportunities in the current robust floating production storage and offloading (FPSO) market, and for Yinson Holdings to return capital to our shareholders and fund our energy transition businesses, Yinson Renewables and Yinson GreenTech.
“We firmly believe in the continued growth of energy demand and also the need for an inclusive energy transition."
Meanwhile, Flemming Grønnegaard, chief executive officer of Yinson Production said the deal was one of the largest structured equity transactions in South-East Asia and the first platform-level equity raise by Yinson Production.
“It builds upon Yinson Production's proven track record of delivering value accretive growth through our integrated platform. The growth capital will further strengthen our leading market position and enable us to seize opportunities in a robust FPSO market environment.”
Yinson Holdings said the transaction is expected to close in the first quarter of 2025, subject to customary closing conditions, including regulatory approvals and approval of the shareholders of Yinson.
“UBS AG, Singapore Branch acted as financial advisor and A&O Shearman acted as legal advisor to Yinson Production in connection with this transaction,” said the group.
Yinson Holdings’ shares were suspended from trading on Tuesday from 9am. The counter’s last trade stood at RM2.70 per share, with a market capitalisation of RM8.66bil.
