[UPDATED] Yinson, MISC shares fall as takeover prospect fails to excite investors

KUALA LUMPUR: A potential acquisition of Yinson Holdings Bhd by MISC Bhd did not garner investor enthusiasm, resulting in declines for both companies early today. Yinson's shares rebounded from an eight sen opening at RM2.24, falling 4.05 per cent to RM2.13 by 9.48am. MISC, which began at RM8.48, experienced a 4.95 per cent drop, or 42 sen, to RM8.06.

As of publication, Yinson shares dropped an additional six sen, or 2.7 per cent, to RM2.16, giving it a market cap of RM6.95 billion. MISC continued its decline to RM7.99, a 5.78 per cent reduction, putting its value at RM35.67 billion. Yesterday, Business Times reported MISC was reportedly planning an offer for Yinson, potentially forming a major global floating production, storage, and offloading (FPSO) entity with a combined fleet of 23 vessels.

A source familiar with the situation stated the takeover would be executed through a consortium potentially including the Employees Provident Fund and Yinson's controlling shareholder, Lim Han Weng. If the transaction occurs, it would be the second time Yinson has been a takeover target, following a previous attempt last year by Lim and US investment firm Stonepeak Partners to privatize the group.

CGS International Securities Malaysia Sdn Bhd reduced its rating for MISC to Reduce from Add in a research note, noting the stock had corrected sharply since mid-2024 following news of its proposed acquisition of Bumi Armada. The firm projected a similar reaction this time, citing Yinson's high gearing, expensive redeemable convertible preference share structure, and slower pace of securing new FPSO orders.