South Korea’s Hanwha Group has made a strategic move to acquire Singapore-based Dyna-Mac Holdings, a specialist in topsides modules, to capitalize on the growing demand for floating offshore facilities, with 83 FPSOs (Floating Production Storage and Offloading units) expected to be ordered by 2030.
Synergies and Strategic Benefits for Hanwha Ocean
This acquisition will allow Hanwha Ocean, previously known as Daewoo Shipbuilding & Marine Engineering (DSME), to create synergies through economies of scale, improved productivity, and enhanced engineering expertise. The tender offer, expected to conclude by the end of 2024, offers S$0.6 (US$0.46) per share, valuing the deal at up to 600 billion won (S$586 million, US$449.3 million).
High-Premium Offer and Strategic Control
Hanwha Ocean and Hanwha Aerospace, through their special purpose company Hanwha Ocean SG Holdings, aim to secure full management control of Dyna-Mac. The offer price reflects a significant 581.8% premium over the lowest share price in the past three years.
Independent Financial Advisor for Dyna-Mac Shareholders
Dyna-Mac’s board will appoint an independent financial advisor to guide shareholders through the offer, ensuring an informed decision on Hanwha’s voluntary cash proposal.
Source: upstreamonline.com
