Group of foreign investment firms contributed $1 B to Malaysia’s Yinson Production
To spur further expansion, Yinson Production, a Malaysian operator of floating storage, production, and offloading (FPSO) vessels, has obtained a $1 billion investment from a group of foreign investment firms.
The company announced in a statement on Tuesday that it has reached a final agreement with a group that includes Platinum Lily B 2024 RSC Limited (Platinum), a fully owned subsidiary of the Abu Dhabi Investment Authority (ADIA), funds managed by British Columbia Investment Management Corporation (BCI), and RRJ Group (RRJ); in order to issue $1 billion in redeemable convertible preferred shares (RCPS) and 10% warrants at a post money valuation of $3.7 billion. The agreement was made through the company’s recently formed UK-based holding company, Yinson Production Offshore Holdings Limited.
Within 24 months of closing, the agreement allows for the issuance of additional RCPS up to $500 million.
While $200 million will be distributed to the controlling shareholder, a wholly owned subsidiary of Yinson Holdings Berhad, the majority of the transaction’s proceeds will go toward Yinson Production’s continued expansion.
“We are very pleased to welcome ADIA, BCI and RRJ as new investors in Yinson Production,
“This is one of the largest structured equity transactions in Southeast Asia and the first platform-level equity raise by Yinson Production,” said Flemming Grønnegaard, Chief Executive Officer of Yinson Production. “
“It builds upon Yinson Production’s proven track record of delivering value accretive growth through our integrated platform,
“The growth capital will further strengthen our leading market position and enables us to seize opportunities in a robust FPSO market environment,” he added.
Subject to customary closing conditions, such as regulatory approvals and Yinson’s shareholders’ approval, the deal is anticipated to close in the first quarter of 2025.
In this transaction, Yinson Production received financial and legal advice from UBS AG, Singapore Branch and A&O Shearman, respectively.
Yinson Production is an independent owner and operator of FPSO vessels and a subsidiary of Yinson Holdings Berhad, an energy infrastructure and technology company listed on the Malaysian stock exchange.
With ten ships in its current fleet, Yinson Production is present in ten countries worldwide and has an orderbook worth over $22 billion through 2048.
The decarbonization of the FPSO sector is being facilitated by the company’s creative Zero Emissions FPSO Concept.
Additionally, Yinson is involved in offshore marine with Regulus Offshore, sustainable investment and asset management with Farosson, green technologies with Yinson GreenTech, and renewable energy with Yinson Renewables.
ADIA is a globally diversified investment firm that was founded in 1976 and uses a long-term value creation strategy to make wise investments on behalf of the Government of Abu Dhabi.
As of March 31, 2024, BCI had CAD 250.4 billion ($174.39 billion) in gross assets under management, making it one of Canada’s biggest institutional investors.
