Malaysian offshore service provider Yinson Holdings has completed the sale of its non-oil and gas subsidiaries to Singapore’s Liannex Corporation (S) at a price considerably lower than was bid last year.
Yinson Corporation; Yinson Transport, Yinson Shipping, Yinson Port Ventures, Yinson Vietnam, plus a 65% equity interest in Yinson Power Marine have been sold to Liannex Labuan for RM161m ($39.6m), the seller said today.
This is considerably lower than the Liannex Labuan’s bid of RM 228m ($60.4m), which was placed in June 2015.
The seller said the revised sale price is based on the disposal companies’ pro forma consolidated net assets of RM158m ($38.9m) for the fiscal year ending January 31, 2016 at the agreed exchange rate.
As such, the consideration may be adjusted within the next three months, once an audit/review of the companies’ actual net assets has been undertaken.
The sale also includes RM62.2m ($15.3m) in inter-company loans owed by the disposal companies to Yinson Holdings.
Liannex Labuan is wholly owned by Liannex Corporation, which in turn is owned by Lim Han Weng and Bah Kim Lian.
The two are major shareholders in Yinson Holdings, which is listed on Malaysia’s Bursa exchange, and are directors of both Yinson and Liannex.
Meanwhile, Yinson Holdings has been focusing on its floating production storage and offloading (FPSO) projects.
It has one unit on contract in Nigeria until October 2018, and last year formed a joint-venture company with Four Vanguard Serviços E Navegaçao LDA, part of Italy’s Premuda, to acquire another FPSO unit.