PETALING JAYA: Yinson Holdings Bhd has announced a proposed bonus issue of up to 1.11 billion new shares on the basis of one bonus share for every one existing share, to be held on a yet-to-be determined entitlement date.

       In a filing with Bursa Malaysia, the group said the proposed bonus issue serves to reward existing shareholders for their continuing support to Yinson by allowing them to participate more in the equity of the company in terms of the number of shares held, whilst maintaining their percentage equity interest in the company.

       In the same filing, the group also proposed a renounceable rights issue with free detachable warrants on a yet-to-be-determined entitlement date to raise gross proceeds of up to RM1.22bil.

       From the proceeds of the proposed rights issue, RM513.21mil will go towards a new floating production, storage and offloading (FPSO) project from Petrobras.

       Further, RM582.41mil will be used for the repayment of bank borrowings, RM48.77mil for the expansion of the group’s energy and green technology business and the remainder towards working capital and expenses for the proposed exercises.

       “After due consideration of the various methods of fund-raising, the board is of the opinion that the proposed rights issue is the most appropriate avenue of raising funds for the Yinson group in view that the proposed rights issue will strengthen the Yinson group’s financial position with the enhanced shareholders’ funds and the reduced gearing level.

       “The proposed rights issue will also provide the shareholders with an opportunity to participate in an equity offering in the company on a pro-rata basis, and ultimately, participate in the prospects and future growth of the Yinson group,” it said.

       Meanwhile, in a separate filing, Yinson said its indirect subsidiary – Yinson Acacia Ltd – had entered into a letter of intent with Enauta Energia SA for the provision of an FPSO facility via the redeployment of FPSO OSX-2 for the Atlanta Field located in the Santos Basin, offshore Brazil.

       “The letter of intent constitutes a binding obligation whereby both parties agreed to enter into an engineering, procurement, construction and installation contract and an operation and maintenance agreement with a call option, exercisable at the discretion of Yinson, to acquire the asset-owning company of the project with a 15-year time charter agreement and an operation and maintenance agreement of the same duration,” said Yinson.

       Under the agreements, Enauta has a right to extend the term of the said agreements by a further five years. The estimated aggregate value of the project, including a two-year operations and maintenance agreement, is US$505mil or about RM2.13bil.

       According to Yinson, the project value will be further increased to US$1.98bil or about RM8.35bil inclusive of a five-year extension period should Yinson exercise the call option.