Yinson Holdings Berhad's indirect subsidiary Yinson Heather Ltd. (YHL) entered into a Joint Venture Deed Thursday with Italy's Premuda's unit Four Vanguard Servicos E Navegacao LDA (FVSN) -- an indirect wholly-owned subsidiary of Premuda -- to establish a joint venture company (JVC) in Singapore to acquire a FVSN vessel, which will then be used in the bidding for floating production storage and offloading (FPSO) projects.
Upon completion of the JVD, the JVC will enter into a Memorandum of Agreement (MOA) to purchase the vessel from FVSN for $65.6 million (€60 million), comprising $22.3 million (€20.4 million), 19.6 million JVC ordinary shares and a convertible note of $21.8 million (€20 million) in the JVC. YHL will hold a 51 percent stake in the JVC. The Cayman Islands-flagged vessel, Four Rainbow, is a double hull Aframax tanker built in Italy in 1992 and converted to an FPSO in 2003. The vessel can stored around 604,000 barrels of crude oil.