KUALA LUMPUR (March 1): Yinson Holdings Bhd will be undertaking a strategic review of its floating production storage and offloading (FPSO) segment, and a public spinoff of the segment is possible.

In a filing on Tuesday (March 1), Yinson said the strategic review is part of its medium-to-long term plan to ensure the group is “prepared and fit for future growth” and that it will be exploring and assessing options available to the group for its FPSO segment.

“The strategic review aims to explore a broad range of options to unlock and maximise shareholder value, and at the same time strengthen the FPSO business,” the filing said.

Yinson said the strategic review would position it to execute its long-term sustainability strategy towards operating in a low-carbon and resilient future.

“These options may include an initial public offering (IPO) or strategic partnership opportunities for the FPSO business segment,” it said.

However, Yinson cautioned that there is no assurance that the strategic review will result in any transaction or that any definitive or binding agreement will be reached and that it will make further announcements in compliance with the Main Market Listing Requirements of Bursa Malaysia Securities Bhd as appropriate.

At the midday break, Yinson’s shares were 15 sen or 2.85% lower at RM5.11, valuing the group at RM5.43 billion based on 1.07 billion shares while trading at 13.91 times historic earnings and 1.32 times its book value, based on Bloomberg data.

Year-to-date, the counter has declined 78 sen or 13.24% from RM5.89 per share.