KUALA LUMPUR: A unit of Yinson Holdings Bhd has acquired Singapore-based liftboat operator Ezion Holdings Ltd (EHL) by striking a deal with EHL’s lenders.

Yinson said Yinson Eden Pte Ltd (YEPL) made the acquisition by entering into a conditional debt conversion agreement and conditional option agreement with EHL.

On completion of the debt conversion, YEPL will hold a minimum 70% stake in EHL’s enlarged share capital, Yinson said in a statement yesterday.

“YEPL is currently in discussion with the said lenders to acquire up to US$916 million (RM3.74 billion) of EHL’s existing loans through debt assignment. The lenders will be paid US$200 million cash and EHL shares by YEPL.

“The EHL shares to be held by YEPL arise from the Conditional Debt Conversion Agreement, which allows YEPL to capitalise the debts into EHL shares at S$0.055 per share and also the Conditional Option Agreement.

“The latter allows YEPL to subscribe to up to 3.36 billion EHL shares at the exercise price of SG$0.0605 per share at any time during a period of five years commencing from the date of the issuance of options,” it added.

The debt assignment, debt conversion and subscription option are subject to the finalisation of the debt assignment with the lenders, and various regulatory approvals.

Yinson chief executive officer Lim Chern Yuan said liftboats are preferable for maintaining oil production which provides synergistic value to the group’s principal activities of leasing, chartering and management of vessels for the oil and gas industry.

“Among others, the liftboats are also the preferred option for installation and maintenance of offshore wind farms. This acquisition exercise is also in line with Yinson’s ambition to venture into the renewable energy sector,” it added.

Yinson said YEPL intends to retain EHL’s listing status.

Moving forward, Yinson said the group is optimistic about turning around EHL’s business after the restructuring of bonds and debts.

Yinson’s share price closed two sen lower at RM4.58 yesterday, with a market capitalisation of RM5.01 billion.