South Korea’s Hanwha Group has moved to acquire Dyna-Mac Holdings, a Singapore-based specialist in topside modules, as part of its strategy to benefit from the increasing global demand for floating offshore facilities. With 83 Floating Production Storage and Offloading (FPSO) units expected to be ordered by 2030, this acquisition positions Hanwha to meet market demand effectively.
Synergies and Strategic Advantages
By securing control of Dyna-Mac, Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) aims to unlock synergies that enhance economies of scale, improve productivity, and boost cost efficiency. Additionally, the acquisition will strengthen Hanwha’s domain knowledge in engineering and operational best practices.
Tender Offer Details
The tender offer for Dyna-Mac’s shares, listed on the Singapore Exchange, is priced at S$0.6 (US$0.46) per share. The offer will be conducted through a Special Purpose Company (SPC), Hanwha Ocean SG Holdings, and is expected to be completed by the end of 2024. The total funding for the acquisition is estimated at approximately 600 billion won (US$449.3 million), assuming 100% ownership.
Investment and Financial Strategy
In May, Hanwha Ocean and Hanwha Aerospace jointly invested 116 billion won to acquire a 25.4% stake in Dyna-Mac. The current offer represents a premium of 581.8% over the lowest closing price of the shares in the last three years and a slight 2.4% discount compared to the highest closing price during this period.
Independent Financial Review
Dyna-Mac’s CEO, Lim Ah Cheng, confirmed that the company’s board will appoint an independent financial advisor (IFA) to guide the directors on their recommendation to shareholders regarding Hanwha’s offer. The appointment will be announced soon.
Source: prnewswire.com
