Singapore-based Ezion Holdings Limited, which has been seeking a potential investor, is to be acquired by Malaysian company Yinson Holdings, whose boss sees offshore wind as a growth opportunity.
Yinson Holdings is expected to take a controlling stake in Ezion Holdings via a proposed deal that includes a share subscription and debt conversion. The deal is at an advanced stage as are Yinson’s discussions with Ezion’s lenders.
In a statement, Yinson Holdings said, “Yinson Eden Pte Ltd, a subsidiary of the company is in advanced stage of discussions with certain lenders including major secured lenders Ezion Holdings Limited and/or its subsidiaries and jointly controlled companies to acquire the benefits and rights in respect of up to US$916.0M of the existing loans extended to Ezion Holdings.”
The proposals are subject to, among other things, finalisation of the debt assignment with the lenders, and a regulatory approval. It is Yinson’s intention to retain the listing status of Ezion.
Yinson Holdings chief executive officer Lim Chern Yuan said, “Liftboats (a type of jack-up vessel) are the preferred option for installation and maintenance of offshore windfarms. This acquisition is in line with Yinson’s ambition to venture into the renewable energy sector.” He noted that liftboats are also used for maintaining oil production facilities in the offshore oil and gas sector.
“Fundamentally, Ezion’s liftboat business has been profitable. Moving forward, Yinson is optimistic about a turnaround of Ezion’s business after the restructuring,” he said.
In recent years, Ezion Holdings has targeted growth in China’s fast-moving offshore wind energy sector.