PETALING JAYA: Ekuiti Nasional Bhd (Ekuinas), via its special purpose vehicle, Hallmark Odyssey Sdn Bhd has divested a 50.2% equity stake in Icon Offshore Bhd to Liannex Maritime Sdn Bhd for RM172.7 million.
This will consequently result in a mandatory takeover offer with an offer price of 63.5 sen, Ekuinas said in a statement.
The offer price represents a 13% discount to Icon’s closing price of 73 sen today.
Liannex Maritime is a wholly-owned subsidiary of Singaporean trading and logistics company Liannex Corp (S) Pte Ltd.
The government-linked private equity firm said that following a debt restructuring exercise in 2018, it reinvested in Icon to ensure the continued sustainability of its business.
At the end of the financial year 2023 (FY2023), Icon completed a capital reduction and share consolidation exercise, effectively eliminating its retained losses and consolidating its shares by a factor of five times.
It said Ekuinas significantly exits its investment in Icon, after a holding period of more than 10 years, with a cumulative realised gain of over RM500 million derived throughout Ekuinas’s holding period.
“The transaction places Ekuinas as one of the few investors within the oil and gas sector to successfully realise its investment.
“Following the transaction, Ekuinas’s shareholding in Icon is reduced to approximately 5.8%,” it said.
Ekuinas CEO Syed Yasir Arafat Syed Kadir said the decision to divest its majority stake in Icon was carefully premised on the current favourable market conditions coupled with the rare opportunity for Ekuinas to pass the baton to a highly credible and committed investor.
“With the investor’s track record and financial stability in the oil and gas industry, we consider the transaction to be a win-win opportunity, mutually beneficial for both Ekuinas and Icon shareholders.
“This strategic divestiture is certainly a reflection of our commitment to maximise shareholder value and one that leaves Icon in capable hands to chart their next level of growth,” he said.
Icon has established itself as an offshore support vessel (OSV) provider in Malaysia and Southeast Asia. It primarily served the Malaysian and Brunei coasts and had a total of 19 active OSVs.
In FY2023, it recorded an active utilisation rate of 75%, with an estimated order book of over RM300 million. - FMT
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