KUALA LUMPUR: Yinson Holdings Bhd
is divesting its offshore marine business, Regulus Offshore, to Icon Offshore Bhd as part of its strategic focus on its floating production storage and offloading (FPSO) and energy transition businesses.
In a statement, Yinson said the disposal was executed via a binding term sheet signed between both parties for a consideration of RM160mil, which is to be satisfied via issuance of new shares by Icon at 88 sen per share.
It said the disposal is subject to the approval of Icon’s shareholders in a forthcoming shareholders’ meeting and relevant government authorities.
The divestment gives Yinson a minority stake and a board seat in Icon, allowing them to benefit from Icon's future growth. Yinson also expects to gain from the sale.
“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.
“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,” group chief strategy officer Chai Jia Jun said.
Yinson's portfolio will now include four businesses—Yinson Production, Yinson Renewables, Yinson GreenTech, and Farosson.
The divestment is expected to be completed around the first quarter of 2025 and will positively impact Yinson's earnings for FYE25.
Separately, Icon reported a higher net profit of RM6.8mil, or earnings per share of 1.19 sen in the second quarter ended June 30 compared with RM4.4mil, or 0.16 sen in the corresponding quarter last year. Revenue climbed to RM56.8mil against RM55.8mil a year prior.
For the first six months, Icon posted a net loss of RM16.4mil on revenue of RM87.3mil.
