MALAYSIAN energy infrastructure firm Yinson Holdings said it has signed an agreement with a consortium of investors for a funding round in its unit that makes vessels used by the offshore oil and gas industry.
Yinson Production Offshore will issue US$1 billion in redeemable convertible preferred shares and 10 per cent warrants to Abu Dhabi Investment Authority subsidiary Platinum Lily and funds managed by British Columbia Investment Management and RRJ Capital, at a post-money valuation of US$3.7 billion, according to a statement on Tuesday (Jan 14).
The statement on the fundraising confirmed an earlier Bloomberg News report.
The agreement, which is expected to close in the first quarter, includes an option to issue additional redeemable convertible preferred shares of up to US$500 million within 24 months, Yinson said, adding that UBS was financial adviser and A&O Shearman was legal adviser on the transaction.
Proceeds will primarily be used to support Yinson Production’s growth, with US$200 million to be used to expand the group’s renewable energy and green technologies businesses, as well as for distributions to shareholders via share buybacks or dividends, according to the statement.
The funding round for comes ahead of a potential initial public offering for Yinson Production, a so-called FPSO – floating production, storage and offloading – company, which could take place in a few years’ time, people familiar with the matter told Bloomberg, asking not to be identified discussing private information.
Bloomberg had also previously reported that Yinson was close to picking the three investors for the private fundraising, as well as RRJ planning to commit US$320 million to the round.
Yinson Production has contracts with firms including Brazil’s Petrobras and the Angolan joint venture of BP and Eni. Global Infrastructure Partners and Sumitomo are also among backers of the unit’s projects. BLOOMBERG
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