UOB Urges Support for YINSON’s RM2.50 Privatisation Offer, Citing Fair Valuation and Stronger Funding Access
Ng Han Siang (Einod) ·
AI-assisted, reviewed by Ng Han Siang (Einod)
UOB Kay Hian analyst Kong Ho Meng considers the proposed RM2.50-per-share cash privatisation offer for Yinson Holdings fair and encourages shareholders to support the proposal. He maintained his “Buy” rating and raised his target price to RM2.50 from RM2.40, implying 10.6% upside. The proposed price is 6.4% above the preliminary RM2.35 discussed in August.
The consortium involving the Lim family, the Employees Provident Fund and MISC proposes acquiring the remaining shares for approximately RM4.03 billion through a court-sanctioned scheme of arrangement. Kong considers the implied valuation of 8.7 times enterprise value to EBITDA reasonable relative to offshore peers and broadly aligned with Yinson Production’s earlier preference-share fundraising.
He believes private ownership would better accommodate the group’s long-term contracted cash flows and substantial financing requirements.
Looking ahead, Kong sees MISC as a strategic capital provider that could gradually lower Yinson Holdings’ financing costs, including through refinancing project bonds carrying interest rates of approximately 7%–9%. This could support future floating production, storage and offloading (FPSO) projects as Yinson Production negotiates potential contracts in Indonesia, Brazil and Nigeria.
He assumes the privatisation will succeed, but completion remains subject to shareholder, court and regulatory approvals, including overseas competition clearances, with potential delisting in the second half of 2027.
As of 12:29 p.m. on November 10, Yinson Holdings’ share price fell 2.2% to RM2.21.
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The call: UOB on YINSON HOLDINGS BERHAD
- Rating
- Buy
- Target price
- RM 2.50 (from RM 2.40)
- Upside from current
- 13.6%
Kong Ho Meng's 12-month track record
No.7 of 13 analysts at UOB
- Success rate
- 36%
- Average return
- -4%
- Stocks covered
- 11
Consensus target price for YINSON
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The call: UOB on MISC BERHAD
- Rating
- Buy
- Target price
- RM 9.50
- Upside from current
- 18.6%
Kong Ho Meng's 12-month track record
No.7 of 13 analysts at UOB
- Success rate
- 36%
- Average return
- -4%
- Stocks covered
- 11
Consensus target price for MISC
Sign up free to see the consensus target, or read the MISC target price and analyst ratings.