KUALA LUMPUR (July 9): Yinson Holdings Bhd is selling a minority stake in its Brazil floating production, storage and offloading (FPSO) unit to Japan's Kawasaki Kisen Kaisha Ltd (K Line) for US$49 million (RM209.45 million).
The deal involves selling a stake of 8.5% to 10% in Yinson Boronia Consortium Pte Ltd (YBC) to K Line, through Yinson's indirect wholly-owned Yinson Acacia Ltd, Yinson said in an exchange filing.
The FPSO is set to start working on the Marlim oil and gas field revitalisation project, which is operated by Petrobras and has agreed to a 25-year charter for the FPSO until 2048, with contract value standing at US$5.4 billion.
This project represents K Line's second FPSO business with Yinson following the offshore Ghana oil and gas field development project based on the consortium partnership with Yinson and Sumitomo Corp, in which the company participated in November 2017.
Yinson said the deal would allow the company to partially monetise its investment in YBC, and free up financial resources at an early stage in the Marlim project to be used to expand and bid for future projects.
"It will also enable the group to continue participating and benefitting from the prospects of the Marlim 2 FPSO, as YBC will still remain as a subsidiary of the group after the proposed disposal."
"In addition, the proposed disposal strengthens the company's relationship with K Line, that already holds an indirect equity stake in FPSO John Agyekum Kufuor. K Line's participation will mark the second strategic investor in project Marlim, alongside Sumitomo," it added.
In April, it was reported that Sumitomo was taking up a 25% stake in YBC, through Sumitomo's wholly-owned unit Japan Offshore Facility Investment Pte Ltd.
Yinson said the new deal with K Line does not require shareholders' approval but is subject to merger control clearance, and it is expected to be completed in the fourth quarter of 2023.
At the time of writing, shares in Yinson were down four sen or 0.7% at RM6, giving the company a market capitalisation of RM6.58 billion. Year-to-date, the FPSO operator is down 7.41%.
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