Malaysia’s Yinson is divesting its offshore marine business, Regulus Offshore, to compatriot Icon Offshore supporting the seller’s strategic direction to focus on its floating production, storage and offloading vessels and energy transition businesses.
Icon noted that Regulus’ key business involves the leasing, operation and maintenance of offshore support vessels (OSV). Regulus Offshore owns two anchor handling tug supply (AHTS) vessels and one platform supply vessel.
“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,” commented Yinson’s group chief strategy officer Chai Jia Jun.“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.”
The disposal is being executed via a binding term sheet signed between both parties for a consideration of 160 million ringgit ($36.8 million), which is to be satisfied via the issuance of new shares by Icon at 0.88 ringgit apiece. The disposal is subject to the approval of Icon’s shareholders at an upcoming shareholders’ meeting and relevant government authorities.
Icon’s acquisition also includes 100% of Yinson Camellia that owns one AHTS vessel and a majority 51% interest in Yinson Power Marine, which owns three steel tug boats and three steel barges.
Yinson’s divestment, when completed, will provide the company with a minority stake and board seat at Icon, which will allow it to participate in the marine contractor’s future growth. Yinson said that it anticipates recognising a gain upon the disposal.“The group’s overarching business objectives drive this divestment, and we have signalled to the market that we will embark on a series of exercises to unlock value for our businesses,” Chai added.
Yinson’s portfolio will now consist of four businesses: Yinson Production (its Singapore-headquartered FPSO division), Yinson Renewables, Yinson GreenTech and Farosson.The sale of Regulus is expected to complete around the first quarter of next year and will have positive impact on Yinson’s 2025 financial year earnings.
Source:https://www.upstreamonline.com