Yinson Takes Majority Stake in Premudas FPSO

zoom Malaysian Yinson Holdings Berhad and Italys Premuda S.P.A. have, through two of their wholly-owned subsidiaries, established a joint venture company through which Yinson will take a majority stake in a Floating Production Storage and Offloading (FPSO) vessel currently owned by Premuda. Yinson Heather Ltd (YHL), a subsidiary of Yinson Holdings, and Four Vanguard Servicos E Navegacao LDA (FVSN), a subsidiary of Premuda, will jointly own and operate FPSO Four Rainbow, with YHL holding a 51% stake in the vessel. The new joint venture company will pay EUR 60 million (USD 65.7m) to FVSN for the vessel, which will be satisfied via a combination of cash, as well as 19,600,000 ordinary shares and a EUR 20 million convertible note in the new JV company. YHL will also pay EUR 20.4 million for 20.4 million shares in the new company, representing a 51% stake. The new company will be incorporated as a limited liability company under the relevant laws of Singapore, with its principal activities being leasing of vessel and ship management services. FPSO Four Rainbow is a 1992-built double hull Aframax tanker, converted to an FPSO in 2003. The vessel flies the flag of the Cayman Islands, and has 604,000 bbl capacity.