KUALA LUMPUR (Aug 30): Offshore support vessel company Icon Offshore Bhd (KL:ICON) on Friday announced a slew of acquisitions totalling RM437.5 million, to be paid in shares, that would more than double its fleet size.

The proposed purchases include Yinson Holdings Bhd’s (KL:YINSON) offshore marine business for RM160 million, Icon Offshore said in an exchange filing. If all of the transactions are successful, Icon Offshore will immediately expand its fleet by an additional 40 maritime assets.

"The expanded fleet will allow the group to increase its operational capacity and service coverage as well as expand its existing customer base,” Icon Offshore said. “The proposed acquisitions will also enable the group to service new geographical regions with future market potential.”

The acquisitions involve four different companies in their entirety, substantial stakes of two other companies, and the remaining shares of two of its majority-owned subsidiaries. All of the proposed acquisitions will be paid through share issuance.

The shares will be issued at 88 sen apiece, a 20% discount from its five-day volume-weighted average market prices of RM1.10 as at Wednesday, according to Icon Offshore.

Icon Offshore currently has about 24 vessels in its fleet, according to its latest annual report.

Icon Offshore is acquiring the entire stake in Liannex Fleet Pte Ltd, a Singaporean company mainly involved in the provision of ship brokering services and ship management services, from Liannex Corporation (S) Pte Ltd for RM182 million.

The company plans to buy a 51% stake in Yinson Power Marine Sdn Bhd for RM18 million and a 70% stake in Regulus Offshore Sdn Bhd for RM136 million. Yinson Power Marine provides marine transport services and leases out tug boats and barges, while Regulus Offshore offers leasing, operations and maintenance of offshore support vessels.

If the deals go through, Yinson will end up as a minority shareholder of Icon Offshore and will also have a seat on the board of Icon Offshore.

Icon Offshore is also acquiring several companies related to Yinson, including the entire stake in Yinson Camellia Sdn Bhd for RM24 million, Yinson Port Ventures Pte Ltd for RM27 million, and Yinson Premier Ltd for RM7 million.

Yinson Camelia is involved in the chartering of offshore support vessels, while Yinson Port Ventures and Yinson Premier have businesses in Vietnam.

Further, Icon Offshore is seeking the remaining 49% stake in Icon Bahtera (B) Sdn Bhd for RM33.7 million, and a 15% stake in Icon Waja (L) Inc for RM9.8 million. Both companies lease out offshore support vessels.

If closed, the acquisitions would allow Icon Offshore to wholly own and fully control the businesses’ operations and managements.

Binding term sheets with the all sellers have been signed, which will be terminated automatically if the parties involved do not sign definitive agreements within four months, Icon Offshore added.

Shares of Icon Offshore closed up three sen or 2.63% at RM1.17, with a market capitalisation of RM728.4 million.