Dyna-Mac founder accepts South Korean Hanwha’s revised buyout offer
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Acquiring Dyna-Mac would grant Hanwha access to Dyna-Mac’s two oil and gas manufacturing facilities in Singapore, as well as its floating production storage and offloading vessels.
PHOTO: DYNA-MAC
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SINGAPORE - The largest shareholder of Dyna-Mac said on Nov 5 it will tender its entire stake in the Singapore-listed company, following South Korean conglomerate Hanwha Group’s increased takeover offer of $790.6 million.
The estate of founder Desmond Lim, Dyna-Mac’s single largest shareholder, did not find Hanwha’s initial offer of 60 cents per share on Oct 10 compelling as it did not adequately reflect the company’s value and growth potential.
On Oct 15, Hanwha Group increased its bid to 67 cents per share for the remaining stake in Dyna-Mac.
The sweetened takeover offer reflected a 35.4 per cent premium over Dyna-Mac’s last traded price on Sept 10, before Hanwha’s initial proposal.
Mr Lim’s estate holds a 30.7 per cent stake in Dyna-Mac while Hanwha’s subsidiaries, Hanwha Aerospace and Hanwha Ocean, collectively own about 25 per cent, LSEG data showed.
Acquiring Dyna-Mac would grant Hanwha access to Dyna-Mac’s two oil and gas manufacturing facilities in Singapore, as well as its floating production storage and offloading (FPSO) vessels.
Hanwha, South Korea’s seventh-largest conglomerate with businesses ranging from aerospace to finance, has been actively acquiring assets globally.
In June, it announced the US$100 million (S$131.9 million) acquisition of Philadelphia-based Philly Shipyard.
Four months before that, it completed the purchase of Korean marine engine company HSD Engine and later renamed it Hanwha Engine.
According to a separate stock filing by Dyna-Mac on Nov 5 before Mr Lim’s estate announcement, the offer was declared unconditional as to acceptances, resulting in an extension of the closing date to 5.30pm on Nov 20 from the earlier Nov 6 deadline.
Hanwha received valid acceptances to over 554 million Dyna-Mac shares, representing about 44.45 per cent of the total number of issued shares in the company.
The offer, however, remains conditional upon a merger control condition that requires the Competition and Consumer Commission of Singapore issuing a favourable decision during its preliminary assessment of the acquisition.
Dyna-Mac specialises in building topside structures for complex offshore vessels used in the production, storage and transportation of fuels like oil and liquefied natural gas.
According to research, this market is expected to grow by 12.5 per cent a year for the next eight years.
Shares of Dyna-mac closed at 66 cents, up 1.53 per cent. REUTERS
