Liannex initiates full takeover of Icon Offshore

Move comes following stake divestment by ekuinas

“With the investor’s track record and financial stability in the oil and gas industry, we consider the transaction to be a win-win opportunity, mutually beneficial for both Ekuinas and Icon shareholders.” Datuk Syed Yasir Arafat Syed Abd Kadir

PETALING JAYA: Liannex Maritime Sdn Bhd, which is controlled by the chairman of Yinson Holdings Bhd, has launched a mandatory takeover of Icon Offshore Bhd, triggered by its acquisition of a 50.2% stake in the offshore support vessel (OSV) provider, yesterday.

The acquisition was equivalent to the purchase of 272 million shares of Icon, at a price of 63.5 sen per share with a cash consideration of Rm172.7mil.

The unconditional mandatory takeover offer would see Liannex Maritime, a full subsidiary of Liannex Corp (S) Pte Ltd, sweep up the remaining 49.8% stake – or 269.6 million shares – of Icon, at the same share price, as well as the existing employee’s share option scheme of Icon.

Liannex Maritime bought the Icon shares yesterday from Ekuiti Nasional Bhd (Ekuinas), the government’s private equity fund management company, which was holding its stake in Icon through special-purpose vehicle Hallmark Odyssey Sdn Bhd.

On top of that, the move would include the acquisition of 130.9 million warrants, or 100% of warrants issued, for a cash offer price of 0.1 sen each.

Liannex Maritime is a trader of coal, cement and gypsum, among other products, and is a private enterprise that is owned by Lim Han Weng, who is also a major shareholder of Yinson, a listed energy infrastructure firm.

According to a statement issued by Ekuinas on its exit of Icon, it has held on to the OSV entity for more than 10 years, with a cumulative realised gain of over Rm500mil derived throughout the holding period.

Ekuinas chief executive Datuk Syed Yasir Arafat Syed Abd Kadir said the decision to divest its majority stake in Icon was carefully premised on the current favourable market conditions, coupled with the rare opportunity for Ekuinas to pass the baton to a highly credible and committed investor.

“With the investor’s track record and financial stability in the oil and gas (O&G) industry, we consider the transaction to be a win-win opportunity, mutually beneficial for both Ekuinas and Icon shareholders,” he said.

He pointed out that the sale is a strategic move that reflected Ekuinas’ commitment to maximise shareholder value while leaving Icon in capable hands to embark on the next level of growth.

Syed Yasir Arafat added that the transaction places Ekuinas as one of the few investors within the O&G sector to successfully realise its investment.

Following the transaction, Ekuinas shareholding in Icon is reduced to about 5.8%, while stating in a Bursa Malaysia filing that it has provided an irrevocable undertaking on Monday not to accept the offer for the remaining 5.8% interest it still holds in Icon following the acquisition by Liannex Maritime.

Yinson itself is a well-established Malaysian O&G group with ownership and operational experience in floating production storage and offloading vessels as well as OSV.

Syed Yasir Arafat said that under Lim’s stewardship and given the latter’s track record and strong industry know-how, Icon is well-positioned to achieve its growth trajectory as a leading OSV provider in the region.

Following news of the transaction, Icon’s share price edged up 3.5 sen, or about 5%, to settle at 73 sen at yesterday’s close. The counter has appreciated 16 sen, or 28%, year-to-date from its 57 sen close on Jan 2.