Key Takeaways
- • A consortium backed by Yinson's top shareholders and shipping major MISC has proposed to take Yinson Holdings private at a valuation of 7.31 billion ringgit ($1.80 billion), according to Reuters.
- • The offer price of 2.50 ringgit per share is 6.4% higher than the preliminary offer made in August and carries a 10.6% premium to Yinson's last closing price.
- • The consideration payable by the consortium for shares not already owned is 4.03 billion ringgit.
- • The consortium includes a MISC unit, Yinson Legacy (Yinson's largest shareholder), and a unit of Malaysia's Employees Provident Fund Board (EPF).
- • The proposed privatisation would give Yinson greater flexibility to fund long-cycle, capital-intensive projects without public-market pressures and open the door to collaboration with MISC.
Summary
Yinson Holdings said on Friday that a consortium backed by its top shareholders and shipping major MISC had submitted a proposal to privatise the energy infrastructure company. The proposal values Yinson at 7.31 billion ringgit, equivalent to $1.80 billion, according to Reuters.
The offer price is 2.50 ringgit per share. That represents a 6.4% increase over the preliminary offer made in August and a 10.6% premium to Yinson's last closing price. The consideration payable by the consortium for the Yinson shares it does not already own totals 4.03 billion ringgit.
The consortium comprises a unit of MISC, which is backed by Petronas, Malaysia's state oil producer; Yinson Legacy, Yinson's top shareholder; and a unit of the Employees Provident Fund Board, the country's retirement fund, which is also a major Yinson shareholder. According to LSEG-compiled data cited by Reuters, the EPF Board holds a nearly 15.5% stake in both MISC and Yinson Holdings.
Yinson stated that privatisation would give it more flexibility to fund long-cycle, capital-intensive projects without the pressures of public-market scrutiny. It would also open the door to closer collaboration with MISC.
The offer price is 2.50 ringgit per share. That represents a 6.4% increase over the preliminary offer made in August and a 10.6% premium to Yinson's last closing price. The consideration payable by the consortium for the Yinson shares it does not already own totals 4.03 billion ringgit.
The consortium comprises a unit of MISC, which is backed by Petronas, Malaysia's state oil producer; Yinson Legacy, Yinson's top shareholder; and a unit of the Employees Provident Fund Board, the country's retirement fund, which is also a major Yinson shareholder. According to LSEG-compiled data cited by Reuters, the EPF Board holds a nearly 15.5% stake in both MISC and Yinson Holdings.
Yinson stated that privatisation would give it more flexibility to fund long-cycle, capital-intensive projects without the pressures of public-market scrutiny. It would also open the door to closer collaboration with MISC.
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