KUALA LUMPUR (July 3): Yinson Holdings Bhd has proposed the disposal of a 26% stake in its indirect wholly-owned unit Yinson Production (West Africa) Pte Ltd to a Japanese consortium.

In a filing with Bursa Malaysia today, Yinson said the consideration is expected to be in the range of US$104 million to US$117 million.

Yinson said it has entered into a Heads of Agreement (HOA) with the consortium to facilitate the disposal, and with the understanding that the two sides will form a collaboration in relation to the contract for the chartering, operation and maintenance of a floating production, storage and offloading (FPSO) facility by Eni Ghana Exploration and Production Ltd in Ghana.

The members of the Japanese consortium are Sumitomo Corp, Kawasaki Kisen Kaisha Ltd (K Line), JGC Corp and Development Bank of Japan Inc (DBJ).

Sumitomo is a leading global trading company with diverse interests across industries ranging from construction systems to infrastructure to energy, while K Line is one of the largest shipping companies globally. DBJ is wholly owned by the Japanese government under the supervision of its finance ministry.

Yinson said the FPSO produced its first oil on May 22, three months ahead of schedule.

Yinson group executive chairman Lim Han Weng said in a statement that the collaboration will enable the parties to form a long-term relationship which then allows each member to tap into the other members’ expertise and background.

The HOA is subject to the contract and to parties entering into a definitive sale and purchase agreement and shareholders’ agreement.

Yinson’s shares closed down six sen (1.6%) at RM3.60 today, for a market capitalisation of RM3.88 billion.