Yinson Holdings Berhad has confirmed receiving a letter from its major shareholder Yinson Legacy Sdn Bhd (YLSB) regarding preliminary discussions with MISC Berhad and other stakeholders over a potential privatisation of the company.
The group said YLSB informed the company that it is currently engaged in preliminary and exploratory discussions with MISC, affiliates of YLSB and the Employees Provident Fund (EPF).
The discussions involve a potential proposal to privatise Yinson through a scheme of arrangement under Section 366 of the Companies Act 2016.
Yinson said its board understands that the proposed scheme remains subject to further evaluations and negotiations among the parties, the execution of definitive agreements, determination of an offer price and other requisite approvals and conditions.
As such, the company stressed that there is currently no assurance that the discussions will lead to or result in the implementation of the proposed privatisation.
The announcement follows MISC’s disclosure that it is exploring possible participation in a consortium in connection with the proposed privatisation of Yinson.
MISC had said an indicative offer price of RM2.35 per Yinson share was being considered based on prevailing circumstances should the proposed scheme materialise. However, the final offer price remains subject to change depending on factors including due diligence and the commercial viability of the transaction.
Under the potential structure outlined by MISC, the proposed scheme is expected to involve the acquisition of all remaining Yinson ordinary shares not already held by YLSB and certain parties acting in concert with it, while EPF would retain its existing effective shareholding in Yinson.
The group’s share price declined 3% to RM2.15 today (August 28)
