Hanwha has announced a tender offer for the shares of Dyna-Mac Holdings Ltd., a company listed on the Mainboard of the Singapore Exchange Limited, at SG$0.6 ($0.46) a share. Hanwha Aerospace and Hanwha Ocean intend to secure management control through the offer, having already invested KRW 116 billion ($86.9 billion) this May to secure a 25.4% stake in the company.
Tender Offer for Dyna-Mac Holdings Shares
Hanwha Aerospace and Hanwha Ocean will conduct the tender offer through a local special purpose company (SPC) in Singapore. The two businesses will fund up to approximately SG$ 586 million1 ($450 million), if they acquire 100% of the shares at close of offer.
The tender offer is conditional upon a minimum acceptance condition of more than 50% of the shares in Dyna-Mac, including all shares owned by the offeror and its concert parties, and a favorable anti-trust decision from the Competition and Consumer Commission of Singapore (CCCS). With United Overseas Bank Limited acting as the financial advisor for the transaction, the tender offer process is expected to be completed by the end of this year.
With global demand for floating offshore plants expected to rise, including a forecast of 83 Floating Production, Storage, and Offloading (FPSO) orders by 2030, securing control of Dyna-Mac Holdings would enable Hanwha Ocean to realize synergies that can be created. This includes creating economies of scale, improving productivity and cost efficiency, and strengthening engineering competencies and best practices.
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Source: Hanwha
