Yinson to takeover Norwegian company

Yinson Holdings Bhd is planning to takeover Norwegian company Fred Olsen Production ASA in a deal that may worth up to RM551.34 million in cash.

Yinson will offer Fred Olsen Production (FOP) shareholders NOK9.40 in cash per FOP share (about RM5.20).

The deal will be funded via proceeds to be raised from its proposed private placement, proposed share issuance, bank borrowings and internally generated funds.

So far, it has obtained the support of FOP's parent First Olsen Ltd. First Olsen has a 61.54 per cent stake in FOP.

"The proposed acquisition is in line with the company's plan to expan its marine-based business to different geographically countries with continued focus on the oil and gas industry.

"The group currently owns three offshore support vessels, as well as a floating storage and off-loading facility.

"Upon completion of the proposed acquisition, the group will have an additional three FPSOs, all of which are contracted with the petroleum companies and should give the YHB Group a steady income stream," said Yinson in its filing to Bursa Malaysia today.

Trading of the company's shares was suspended today. It last traded price was RM4.76 -- its all time high.