Yinson Annual Report 2019

211 Yinson Group Overview Strategy and Sustainability Governance Accountability Annual General Meeting 48. SUBSEQUENT EVENTS (CONTINUED) (e) On 31 March 2019, Yinson Eden Pte Ltd (formerly known as Yinson Boronia Production (S) Pte Ltd) (“YEPL”), an indirect wholly owned subsidiary of the Company, entered into a Conditional Debt Conversion Agreement and Conditional Option Agreement, with Ezion Holdings Limited (“EHL”), a Singapore company specialises in the development, ownership and chartering of offshore assets to support the offshore energy markets, with the intention to acquire a majority stake in EHL. YEPL is currently in advanced stage of discussions with certain lenders including major secured lenders of EHL and/or its subsidiaries and jointly owned companies (collectively “EHL Group”) (“Designated Lenders”) to acquire the benefits and rights in respect of up to USD916,000,000 (equivalent to approximately RM3,739,112,000) of the existing loans extended to the relevant EHL Group company (“Existing Loans”) under the relevant facility and/or credit agreements (“Existing Financing Agreements”) with such Designated Lenders (“Relevant Debts”) through debt assignment. The Conditional Debt Conversion Agreement allows YEPL to capitalise the Relevant Debts into EHL shares at SGD0.055 per share. The Conditional Option Agreement allows YEPL to subscribe for up to 3.36 billion EHL shares at the exercise price of SGD0.0605 per share at any time during a period of 5 years commencing from the date of the issuance of options. Upon completion of the debts conversion, YEPL will hold a minimum of 70% of EHL’s enlarged share capital. The debts assignment, Debts Conversion and the subscription option are collectively known as the “Proposals”. TheProposals are subject to, amongst others, finalisationof thedebts assignment with the lenders, and awholehost of regulatory approvals. It is YEPL’s intention to retain the listing status of EHL. The Proposals are inter-conditional and the completion of such Proposals shall take place simultaneously. (f) On 17 April 2019, Adoon Pte. Ltd., an indirect wholly owned subsidiary of the Company entered into extension of contract on existing terms and conditions for the charter of FPSO Adoon with Addax Petroleum Development (Nigeria) Limited on an interim basis from 17 April 2019 to 16 May 2019. 49. AUTHORISATION OF FINANCIAL STATEMENTS FOR ISSUE The financial statements for the financial year ended 31 January 2019 were authorised for issue in accordance with a resolution of the Board of Directors on 6 May 2019.