Yinson unit in talks with EHL’s lenders

KUALA LUMPUR: Yinson Holdings Bhd plans to buy Singaporean liftboat operator Ezion Holdings Ltd (EHL) by striking a deal with EHL’s lenders.

Its wholly-owned subsidiary, Yinson Eden Pte Ltd, has entered into a conditional debt conversion agreement and conditional option agreement with EHL.

Yinson Holdings is in discussions with the lenders to acquire up to US$916 million (RM3.7 billion) of EHL loans through debt assignment.

It said the lenders would be paid US$200 million in cash and EHL shares by Yinson Eden.

Upon completion of the debt conversion, Yinson Eden will hold a minimum 70 per cent stake in EHL’s enlarged share capital.

Yinson Holdings group chief executive officer Lim Chern Yuan said liftboats were preferable for maintaining oil production.

“The liftboats are also the preferred option for the installation and maintenance of offshore wind farms.

“This acquisition exercise is also in line with Yinson Holdings’ ambition to venture into the renewable energy sector.

“Fundamentally, EHL’s liftboat business has been profitable. Moving forward, Yinson Holdings is optimistic about the turnaround of EHL’s business after the restructuring of bonds and debts,” he added.