Korea's Hanwha Raises Offer for Singapore's Dyna-Mac Takeover

Monday, October 14, 2024

South Korean conglomerate Hanwha Group on Monday raised its offer for the remaining stake it does not already own in Singapore's Dyna-Mac, valuing the offshore oil and gas contractor at S$790.6 million ($605.41 million).

The improved offer of S$0.67 per share represents a 35.4% premium to Dyna-Mac's last traded price on Sept. 10, before Hanwha's earlier offer of S$0.60 per share was disclosed.

Shares of Dyna-Mac last closed at S$0.65, having climbed 94% year-to-date, LSEG data showed.

Hanwha said in a statement that the improved offer is "final" and it "has no intention to increase or revise" it.

The latest offer follows a statement on Oct. 10 from Dyna-Mac's single largest shareholder, the estate of founder Desmond Lim, that it did not find Hanwha's S$0.60 offer "compelling" as it did not adequately reflect the company's value and growth potential.

Lim's estate holds a 28.36% stake in Dyna-Mac, while Hanhwa's units Hanhwa Aerospace and Hanwha Ocean 042660.KS own a combined stake of around 24% stake, LSEG data showed.

Hanwha said on Monday that the latest final offer price was reflective of the acquisition's intrinsic value and it "may consider other strategic options available to it should the offer not succeed at this juncture."

In September, Hanwha halted talks to acquire Austal, five months after the Australian shipbuilder said it had rejected an A$1.02 billion ($686.36 million) takeover offer because it was unlikely to be approved by Australian and U.S. regulators due to the sensitivity of its operations.

The acquisition of Dyna-Mac will provide Hanwha access to the company's two oil and gas manufacturing facilities in Singapore and its floating production storage and offloading vessels.

Hanwha said it took into consideration the Singaporean firm's financial performance as well as the potential benefits of its recent Exterran Offshore acquisition to conclude its offer price.

($1 = 1.3059 Singapore dollars)

($1 = 1.4861 Australian dollars)


(Reuters - Reporting by Rajasik Mukherjee in Bengaluru and Yantoultra Ngui in Singapore; Editing by Mrigank Dhaniwala, Eileen Soreng and Christian Schmollinger)

Categories: Offshore Industry News Activity Asia Oil and Gas

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