Yinson continues to surge on takeover report, CIMB Sec maintain RM2.93 target price
OIL-AND-GAS services firm Yinson Holdings Bhd continued to surge in early trading today after potential buyout talks.
At 9.30am today, the counter was up 6 sen or 2.6% to RM2.40, with 5.6 million shares exchanging hands.
On June 6, Bloomberg reported that US-based Stonepeak Partners was in exclusive talks with the Lim family, led by Lim Han Weng, which holds a 26.6% stake in Yinson, to take the company private, in a deal that could value the group at up to RM9 billion (US$2.1 billion).
In a report today, CIMB Securities noted that the New York-based infrastructure investment firm Stonepeak Partners was reported to be in exclusive talks to acquire Yinson.
It said the valuation equated to RM3.23 per share based on 2,784 million existing shares in Yinson, and represents a 38.0% premium over the last closing price of RM2.34 and a 10.2% premium to its target price of RM2.93.
If the report is accurate, this could potentially lead to a privatisation offer for the remaining Yinson shares, it added.
'In our view, the exclusivity arrangement indicates that the deal has entered advanced stages of negotiation, with the Lim family — Yinson's founder — holding a 26.6% stake.
'Stonepeak's investment focus appears aligned with Yinson's strategic direction. Yinson fits Stonepeak's preference for infrastructure-based, cash-generating assets with long-term contracts. This deal would also help Stonepeak increase its exposure in Asia Pacific energy infrastructure, where Yinson has already established a solid and growing footprint,' CIMB Securities said in the report. –TMR
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