KUALA LUMPUR (Nov 6): A consortium comprising MISC Bhd (KL:MISC), Yinson Holdings Bhd's (KL:YINSON) founding Lim family and the Employees Provident Fund (EPF) has submitted a formal proposal to privatise Yinson at RM2.50 per share, valuing the energy infrastructure group at RM7.31 billion.
The proposed acquisition of the remaining 55.2% stake in Yinson, involving 1.61 billion shares, will entail a cash consideration of RM4.03 billion, according to a proposal letter dated Friday.
Of the RM4.03 billion, PETRONAS-controlled MISC is expected to contribute approximately RM3.03 billion, according to a separate filing by the shipping and offshore energy infrastructure group. MISC currently holds no shares in Yinson.
The transaction will be undertaken through MY Offshore Holdings Sdn Bhd (MYOH), in which MISC and Yinson Legacy Sdn Bhd (YLSB), the investment vehicle of Yinson executive chairman Lim Han Weng, will each hold a 41.464% stake, while EPF will retain an effective 17.072% stake.
MISC will inject RM3.03 billion into MYOH to buy the shares. At end-June, MISC had RM7.2 billion in cash, deposits and bank balances, against total borrowings of RM12.96 billion.
YLSB, which owns 27.73% of Yinson, will transfer its stake to MYOH and contribute the remaining RM1 billion in cash, while EPF, which holds 17.07%, will only roll over its shares.
Upon completion, the consortium will own 100% of Yinson through MYOH.
The offer price represents a 6.4% increase over the indicative price of RM2.35 per share first floated when privatisation discussions were announced on Aug 28.
It also represents a 10.13% premium to Yinson's last traded price of RM2.27 on Thursday (Nov 5), and a 16.28% premium to its closing price of RM2.15 on Aug 28, before the initial privatisation announcement.
In the filing, the consortium said the proposed privatisation opens the door for potential collaboration between Yinson and MISC.
Yinson's offshore floating asset subsidiary Yinson Production Ltd and MISC are both established players in the floating production, storage and offloading (FPSO) industry, with Brazil among their common markets.
Yinson Production has also begun building specialist capabilities to enter the floating liquefied natural gas (FLNG) vessel market, in which major LNG player PETRONAS is active.
"The proposed scheme is expected to provide a platform for YHB and MISC to explore strategic, operational and commercial collaboration opportunities, where appropriate," the consortium said in the proposal letter.
It would also provide Yinson with greater flexibility to pursue long-term investments and capital allocation decisions, the consortium said.
Regulatory clearances required include merger control approvals in Brazil, Angola, Nigeria, Vietnam and the European Union, as well as consent from Ghana's Petroleum Commission and Norway's Ministry of Energy for changes in Yinson's indirect ownership.
The consortium has requested that Yinson's board decide whether to recommend and put forward the proposed scheme to shareholders by Dec 4.
Yinson operates eight FPSO vessels and three floating storage and offloading (FSO) units in Brazil, Africa, and Southeast Asia, including FPSO Helang for ENEOS offshore Sarawak.
Yinson also has a renewable energy arm with over 500MW of generation capacity across India and Peru. It also owns a green technology arm, which, among others, operates an electric vehicle charging network in Malaysia and Singapore.
At RM2.50 per share, the offer values Yinson at 1.36 times its net asset value and an enterprise value-to-earnings before interest, taxes, depreciation and amortisation (EV/Ebitda) multiple of 8.72 times, based on its latest available financial results for the period ended July 31, 2026.
For the six months ended July 2026, Yinson’s net profit increased 14.81% to RM248 million from RM216 million in the same period a year ago, though revenue fell 15.77% to RM2.19 billion from RM2.59 billion.