KUALA LUMPUR: Yinson Holdings Berhad is divesting its offshore support vessel (OSV) business to Icon Offshore Bhd for RM160 million.
Its subsidiary, Yinson Offshore Services Sdn Bhd, has signed a binding term sheet with Icon Offshore, with the transaction being settled via the issuance of 181.8 million new Icon shares at 88 sen per share, according to a filing with Bursa Malaysia.
Under the agreement, Yinson will sell its entire 70 per cent equity interest and 100 per cent of the non-convertible redeemable preference shares in Regulus Offshore Sdn Bhd for RM124 million.
Yinson will also dispose of its 100 per cent stake in Yinson Camellia Sdn Bhd for RM36 million.
Regulus Offshore owns two anchor handling tug and supply vessels and a platform supply vessel, while Yinson Camellia owns an anchor handling tug and supply vessel.
In a statement, Yinson noted that these disposals align with the group's strategic focus on its floating, production, storage, and offloading (FPSO) and energy transition businesses.
Upon completion, the divestment will grant Yinson a minority stake and a board seat in Icon Offshore, enabling the group to partake in the future growth of Icon Offshore.
Yinson's group chief strategy officer, Chai Jia Jun, said that this divestment reflects the group's strategic objectives and signals a broader plan to unlock value across its businesses.
"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," he said.
Yinson's portfolio will now consist of Yinson Production, Yinson Renewables, Yinson GreenTech, and Farosson.
The divestment exercise is expected to be completed in the first quarter next year, and Yinson expected a positive impact on its FY25 earnings.