By Lawrence Yong
Lim Han Weng
Yinson Holdings said it will get RM400 million in loans to buy Norway’s Fred Olsen Productions from 3 banks including the company’s long-time bankers Singapore’s United Overseas Bank Ltd and AmInvestment Bank, and a new backer, Maybank.
The loans will cover up to 70% of the RM576 million purchase price announced last week for the move to catapult family-owned Yinson into a leading integrated oil and gas service company.
“We look forward to establish a long-term working relationship with Maybank, and we believe that given their prominent track record and experience in the market, it will be a promising relationship going forwards,” Lim Han Weng, managing director of Yinson was quoted saying in a press release.
Maybank, the biggest bank in Malaysia, has also been appointed as the financial adviser and this is their first major deal together.
The total acquisition cost for Fred Olsen would be RM576 million, of which RM176 million will be funded through private placement, share issuance and internally generated funds, Yinson said.
The press release said that Yinson is one of Malaysia’s premier integrated offshore services providers. The Yinson Group of Companies was established in 1983 as a transport agency partnership business in Johor Baru. Since then, the Company has expanded their network of services to major cities in Peninsular Malaysia, Thailand, Vietnam and Singapore.
Fred Olsen will be its biggest single buy ever.
The company’s shares have rocketed up from RM2.80 to an all-time peak of RM5.15 in the last six weeks. On Monday, it was trading at RM4.66, down 1.27%.
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