ACCOUNTABILITY 218 YINSON HOLDINGS BERHAD 19. INTANGIBLE ASSETS (CONTINUED) (a) Licenses On 19 February 2025, Yinson Production Fortuna Holdings B.V., an indirect wholly-owned subsidiary of the Company, completed the acquisition of 100% equity interest in Stella Maris CCS AS (“Stella Maris”) from Altera Infrastructure. As a result, Stella Maris became an indirect wholly-owned subsidiary of the Company. This transaction has been accounted for as an asset acquisition. The fair value of the total consideration, comprising cash paid of USD14.2 million (equivalent to RM60 million) and contingent consideration of USD14.4 million (equivalent to RM61 million), was recognised as intangible assets as it relates to the acquisition of a license to operate a carbon capture and storage project. USD10 million (equivalent to RM42 million) of the contingent consideration was paid during the current financial year. The contingent consideration represents earn-out payments linked to the achievement of specific project development milestones, namely: - successful appraisal drilling results; - final investment decision; and - receipt of the EU innovation grant. The contingent consideration is classified as a financial liability under MFRS 9, as it gives rise to an obligation to deliver cash with uncertain future cash flows. It is initially measured at fair value and subsequently remeasured at fair value through profit or loss at each reporting date. The fair value at the acquisition date was determined in accordance with MFRS 13 Fair Value Measurement, using the expected cash flow method (probability-weighted scenario analysis), which was considered the most appropriate technique given the clearly identifiable and measurable milestone payments. Management estimated the probability of achievement and timing of each milestone based on technical feasibility studies, expert assessments, and internal forecasts. The fair value was derived by discounting the probability-weighted expected payments using a discount rate reflecting the Group’s refinancing rate and the risks specific to the liability, consistent with a market-participant perspective. The fair value of the contingent consideration will be reassessed at each reporting date to reflect changes in probability, timing, or discount rate assumptions, with any resulting fair value adjustments recognised in profit or loss in accordance with MFRS 9. The license acquired grants exclusive rights for the Group to explore designated underwater reservoirs for potential CO₂ storage. The cost of the license is amortised on a straight-line basis over its expected useful life of 14 years. Details of the purchase consideration and cash outflow are as follows: RM million Cash consideration 60 Contingent consideration payable 61 Total purchase consideration 121
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