Yinson still waiting for Ezion lenders' nod on US$916m debt conversion

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KUALA LUMPUR (July 11): Yinson Holdings Bhd, which plans to buy a controlling stake in Singapore-listed Ezion Holdings Ltd via assignment and conversion of the latter's debt, is still waiting for Ezion's lenders' approval on the corporate proposals. This is because due diligence on the exercise is ongoing.

Yinson and Ezion, via their marine vessels, offer support services to the oil and gas industry.

Yinson group chief executive officer Lim Chern Yuan said here today at a press conference: "Currently we have not got the approval from all the banks (involved). The due diligence process is still ongoing."

Lim declined to specify a date by which the proposals will materialise.

Yinson, which initially announced the proposals on March 31 this year, had indicated it expected to complete the corporate exercise in the third quarter of this year.

On March 31, Yinson said in a Bursa Malaysia filing its wholly-owned subsidiary Yinson Eden Pte Ltd (YEPL) proposed to acquire up to US$916 million (about RM3.77 billion) worth of Ezion debt from Ezion's lenders and convert the debt into new Ezion shares.

"It is the intention of YEPL to acquire up to US$916.0 million of the relevant debts for a consideration to be agreed with the designated lenders. Tentatively, Yinson expects its cash outlay shall be in the region of US$200.0 million and some Ezion shares that will give YEPL a shareholding of not less than 70% in Ezion at the point of completion of the proposed debt conversion and subscription," Yinson said.

On April 12, Yinson said YEPL is still in negotiations with the major secured lenders of Ezion on the proposals.

At Bursa Malaysia today, Yinson shares were traded up five sen or 0.7% at RM7.15 with 2.23 million units transacted. The stock pared gains after rising to its intraday high of RM7.23.

See also: Yinson buys loss-making Singapore liftboat operator Ezion