CGS International warns Yinson Holdings Bhd’s heavy gearing leaves shareholders including MISC Bhd exposed to project execution risks.
Key takeaways
CGS International warned that Yinson’s high gearing and operational risks could expose shareholders, while a proposed privatization by MISC, Yinson’s founding family and EPF would value the company at RM7.31 billion and involve a RM2.50 share offer.
- Yinson’s net gearing is 1.1×, rising to 3.1× if certain securities are reclassified as debt.
- MISC, the Lim family and EPF plan to take Yinson private at RM2.50 per share, a 10.6% premium to the Nov 6 closing price of RM2.26.
- The transaction values Yinson at RM7.31 billion and will be executed through MY Offshore Holdings, with MISC and YLSB each holding 41.46% and EPF 17.07%.
Summarised automatically by AI from the original article by Free Malaysia Today. AI can make mistakes, so check the original for details.
MISC Bhd, the Lim family, and the EPF have made a RM4 billion offer to take Yinson Holdings Bhd private at RM2.50 a share. (Yinson pic)PETALING JAYA: MISC Bhd’s proposal to acquire and privatise Yinson Holdings Bhd via a consortium would increase its financial risk, a research house said.
CGS International warned that the energy infrastructure group's heavy gearing leaves shareholders particularly “exposed to project execution risks”.
“Yinson is very highly geared, and its operational execution needs to be almost perfect for its shareholders to secure positive returns,” said CGS in a research note.
It put Yinson’s net gearing at 1.1 times as at July 31, rising to 3.1 times under its assessment if perpetual securities and redeemable convertible preference shares (RCPS) were reclassified from equity to debt.
