Oil and gas service provider Yinson Holdings Berhad is exiting its logistics and trading business to focus on its burgeoning floating production, storage and offloading (FPSO) business. It is divesting its logistics and trading subsidiaries via Liannex Labuan Limited (LL) to the group’s major shareholders and executive directors for a consideration of RM 228 million. LL is wholly owned by Liannex Corporation (S) Private Limited, which is wholly owned by Lim and Bah. It is reckoned that the proceeds from the disposal of the group’s six non-oil and gas subsidiaries will enable it to drive a centric focus business operation and reinvest the proceeds in more lucrative oil and gas projects with higher project internal rate of return. The offer is subject to, among other things, LL being satisfied with the findings of a due diligence of the six units, and approval from Yinson’s board of directors and shareholders at an extraordinary general meeting to be convened.
