Malaysia’s Yinson Holdings, via subsidiary Yinson Eden, is in advanced discussions with lenders of Singapore’s Ezion Holdings to acquire up to $916m of debt with options to be converted to shares that would give the company a controlling 85.9% stake.
The acquisition will be financed with $200m and Yinson shares.
The company said the deal is an opportunity to expand its business. Yinson is primarily involved in FPSOs, FSOs and OSVs while Ezion owns 12 liftboats, 17 rigs, 5 offshore support vessels and 30 tugs and barges.
Ezion Holdings secured a $1.5bn refinancing package with DBS, OCBC, UOB, MayBank, CIMB and Caterpillar Financial in February last year after suspending its shares in August 2017 with liabilities of over $1.6bn and around $340m of debt obligations payable in the 12 months following.