South Korean conglomerate Hanhwa Group has offered to acquire all of the shares it does not own in Singapore's Dyna-Mac Holdings, valuing the offshore oil and gas contractor at S$669.2 million ($513.90 million).
Hanhwa's units Hanhwa Aerospace and Hanwha Ocean already own a 25.4% stake in Dyna-Mac. The units intend to secure management control through the offer.
The buy-out offer price of S$0.6 per share is at a 21.2% premium over Dyna-Mac's last closing price.
The tender offer process is expected to be completed by end of 2024, Hanhwa said, adding that its units will conduct the offer through a special purpose company in Singapore.
Dyna-Mac specializes in marine floating offshore plant structures and has two manufacturing facilities in Singapore. Its core product is floating production storage and offloading vessels.
Global demand for floating offshore plants is increasing, with 83 such vessels expected to be ordered by 2030, Hanhwa said.
($1 = 1.3022 Singapore dollars)
(Reuters - Reporting by Ayushman Ojha; Editing by Mrigank Dhaniwala)