Latest news with #RM2.76
The Star
09-06-2025
- Business
- The Star
Yinson Holdings breaks silence on buyout rumour
PETALING JAYA: Amid rumours of a corporate buyout, Yinson Holdings Bhd confirmed that its single-largest shareholder and chairman is in talks with several parties for a 'potential corporate proposal'. The leading operator of floating production, storage and offloading (FPSO) vessels, however, stopped short of disclosing whether the proposal entails taking Yinson private. 'The company wishes to clarify that it is not in discussion with any third parties in respect of any buyout exercise. 'After consultation with its major shareholders, the company was advised by (chairman) Lim Han Weng that they are in exploratory discussions with various parties with reference to potential corporate proposal(s) concerning their shareholding in Yinson. 'However, given that the discussions are still at an exploratory stage, there is currently no conclusive indication that the discussions would give rise to a corporate proposal involving Yinson,' it said in a filing with Bursa Malaysia. Yinson also reminded shareholders to exercise caution and seek appropriate advice when dealing in its shares. In yesterday's early trade, the Yinson stock continued to rise following news that New York-based infrastructure investment firm Stonepeak Partners is in exclusive talks to acquire the oil and gas services firm. Yinson shares had climbed to an intra-day high of RM2.44 before profit-taking saw the price settling at RM2.33 at market close. A total of 19.08 million shares were traded. In the past five trading days, Yinson shares are up 16.50% although it is still down about 11% year-to-date. Last Friday, Bloomberg reported that the founding Lim family of Yinson is working together with Stonepeak to privatise the company at RM2.76 or up to RM3.11 per share. CGS International (CGSI) Research said this valued Yinson at about RM9bil, assuming RM3.11 per share. At yesterday's closing, Yinson's market cap stood at RM7.27bil. According to CGSI Research, it is not surprised by the news because when Yinson announced earlier this year that its subsidiary Yinson Production would issue US$1bil in redeemable convertible preference shares (RCPS) to three funds, the company's share price fell 35% from RM2.70 to a low of RM1.75 on April 9, 2025. This came as investors were worried about the high interest cost of the RCPS issue at 12.95% per year or higher. 'We understand from Yinson that the first US$300mil tranche of the RCPS will likely be issued in mid-June 2025 with US$200mil to be issued in mid-December 2025, US$300mil in mid-June 2026 and the final US$200mil in mid-December 2026,' said the research house in a report yesterday. Recall that the Lim family, which owns 27% of Yinson, plans to list Yinson Production on the US equity markets in five years' time. One possible scenario CGSI Research saw was for the Lim family to take a loan from Stonepeak with a view to repay it in five years upon the initial public offering of Yinson Production. This would mean that the Lim family may ultimately hold 100% of Yinson, assuming the privatisation happens. 'But we think that the Lim family would likely at least maintain its about 27% equity stake in Yinson if Stonepeak comes in as an equity partner.' The research house said it would be unlikely that the three funds would block the privatisation of Yinson, as the ultimate beneficial ownership of the group will likely remain in the hands of the Lim family, whichever the scenario. It said the listing of Yinson Production would be the key exit plan for those funds as well as yield significant capital gains for Yinson. This is probably the rationale for the potential privatisation of Yinson, added CGSI Research.
The Sun
26-05-2025
- Business
- The Sun
Northern Solar achieves RM84.9m revenue in Q4 FY25 amid strong solar EPCC demand
KUALA LUMPUR: Northern Solar Holdings Bhd, a leading renewable energy solutions provider, achieved a revenue of RM84.9 million for the fourth quarter (Q4) ended March 31, 2025 (FY25), primarily driven by robust project execution within its core engineering, procurement, construction, and commissioning (EPCC) of solar photovoltaic (PV) systems segment. Northern Solar recorded a full-year net profit of RM14.2 million, after adding back one-off IPO listing expenses of RM2.76 million incurred during the financial year. For Q4 FY25 specifically, the net profit after adding back the IPO expenses was RM3.3 million, broadly stable compared to the preceding quarter's profit of RM3.4 million, demonstrating sustained operational efficiency. Managing director Lew Shoong Kai said the company's FY25 financial results reflect solid operational performance and effective cost management. 'The successful IPO in February 2025 significantly enhanced our balance sheet, giving us a strong foundation to expand into larger-scale solar projects. 'Our strengthened financial position places us in a favourable position to pursue strategic growth opportunities, particularly in the large-scale solar (LSS) segment,' he said. As of March 31, 2025, Northern Solar maintained a healthy unbilled order book of approximately RM70 million, providing clear earnings visibility into the next financial year. Furthermore, the group holds a robust tender book of approximately RM1.8 billion, excluding potential contributions from upcoming large-scale solar projects. This substantial tender pipeline underscores the group's strong growth prospects. Northern Solar's financial standing post-IPO remains robust, reflected in a solid cash balance of RM52.2 million and a low gearing ratio of just 0.15 times. Healthy operating cash flows, amounting to RM7.2 million, generated during FY25 further strengthen the group's financial stability. Looking ahead, the outlook for Malaysia's renewable energy industry remains highly positive, supported by the government's firm commitment under the National Energy Transition Roadmap (NETR) to achieve a 70% renewable energy mix by 2050. Upcoming initiatives, including the Large-Scale Solar schemes (LSS5, LSS5+, and LSS6), are projected to unlock between RM15 billion and RM18 billion in EPCC opportunities within the next two years, providing substantial growth potential for the group. 'With our significantly strengthened balance sheet and enhanced financial resources, Northern Solar is now actively eyeing opportunities in these large-scale initiatives, alongside the Corporate Renewable Energy Support Scheme (CRESS) and Corporate Renewable Energy Agreement Model (Cream). 'We are optimistic about capturing our fair share of these major projects, further enhancing our pipeline and reinforcing our growth trajectory,' he said. Northern Solar also remains focused on expanding its recurring income streams. The group currently operates approximately 5 MW of renewable energy generation assets and aims to triple this capacity in the upcoming financial year. This strategic move is expected to contribute to earnings stability and further strengthen the company's financial profile.
