KUALA LUMPUR: Three companies controlled by Yinson group executive chairman Lim Han Weng have signed conditional share sale and purchase agreements (SSPAs) to consolidate their offshore support vessel (OSV), commodities transportation, warehousing and port business under Icon Offshore Bhd.
Today, Icon Offshore entered into four conditional share with Lim and companies controlled by him for the purchase of Liannex Fleet group, selected Yinson Holdings Bhd's subsidiaries, as well asbuyout the joint venture partner for two of Icon Offshore's vessels, for RM429.1 million.
The purchase price will be satisfied via the issuance of a total of 487,613,637 in Icon Offshore.
Liannex Fleet is domiciled in Singapore and has long-term time charter contracts with Liannex Corporation for its fleet of steel tug boats, steel barges and steel bulk carriers, primarily used for the transport of commodities such as coal in the regional trading routes of Malaysia, Singapore, Indonesia, and Vietnam. Liannex Fleet group's revenue is generated from Singapore.
The deal will lead to Liannex Fleet, Yinson Power Marine, Yinson Camellia, Yinson Port Ventures Pte Ltd (YPVPL),Yinson Premier Limited (YPL), Icon Bahtera, and Icon Waja become wholly-owned subsidiaries of Icon Offshore, while Regulus Offshore will become a 70 per cent-owned subsidiary of the company.
Icon Offshore in a filing with Bursa Malaysia Securities said the proposed acquisition of Liannex Fleet, Yinson Power Marine, Regulus Offshore and Yinson Camelia will enable its group to enlarge its offshore support vessel (OSV) and marine vessel fleet through the addition of 4 OSVs, 17 steel tug boats, 17 steel barges (including one new-build) and two steel bulk carriers.
"The expanded fleet will allow the group to increase its operational capacity and service coverage as well as expand its existing customer base."
"The proposed acquisitions will also enable the Icon group to service new geographical regions with market potential," the filing said.
The company said the acquisitions will allow Icon Offshore to diversify its services by adding transportation and logistics for commodities and dry bulk cargo through the acquisitions of Liannex Fleet and Yinson Power Marine.
"Additionally, the acquisitions of Yinson Port Ventures Pte Ltd and Yinson Premier Limited will enable the group to venture into port and warehouse operations, broadening its income streams."
"On the other hand, the proposed acquisition of Icon Bahtera Icon Waja will allow Icon Offshore to fully consolidate and obtain full control of the business and management of Icon Bahtera and Icon Waja," it added.
The deals will bring Ekuinas Capital's stake in Icon Offshore down to 2.82 per cent.
It will also see the the public shareholding spread of the Icon Offshore reduce to 23.85 per cent from 34.58 per cent.
This will be remedied by Liannex Maritime placing out a number of existing Icon shares to third party investors, which will be identified later.