's disposal of a minority stake in Marlim 2 FPSO to Kawasaki Kisen Kaisha Ltd (K Line) as "fair and justifiable"."The disposal implies a total project valuation of ~RM2.1b, which is slightly below our ascribed valuation on the project of RM2.8b.
"But nonetheless, we feel that this is acceptable and justifiable, given that the project is still in its early construction phase," it said.
The research house maintained its "outperform" recommendation on the stock with an unchanged target price of RM7.10, with no changes to its FY21-22 forecasts.
In an announcement yesterday, Yinson said it had proposed a deal to sell between 8.5% and 10% of its stake to Japan's K-Line for US$49mil (RM210mil).
Yinson's stake in the venture will be reduced to as low as 65% from its current 75%, while a third equity stake holder will be introduced to the project.
Sumitumo Corp is another stakeholder in the venture with a 25% stake.
Kenanga is neutral on the disposal the disposal as it was somewhat expected. It said the disposal would allow Yinson to monetise the project and recycle the capital into other ventures, including the yet-to-be-awarded Parque das Baleias FPSO project in Brazil.
It added that it is also anticipating a possible rights issue for Yinson to raise capital to fund its upcoming Parque das Baleias FPSO project.
"This may lead to a possible share base dilution of ~10%, which we have yet to factor into our SoP," it said.