- Singapore’s Cyan MMA Holdings, a subsidiary of offshore wind vessel operator Cyan Renewables, is set to acquire Australian offshore vessel company MMA Offshore through a scheme of arrangement.
- This deal, valued at over $671.5 million, aims to expand Cyan’s presence in offshore wind support services and the wider maritime industry.
Cyan MMA Holdings, a Singapore-headquartered offshore wind vessel operator and subsidiary of Seraya Partners, has taken steps to acquire Australian offshore vessel player MMA Offshore through a binding scheme implementation deed (SID). The proposed acquisition values MMA equity at over $671.5 million (A$1.03 billion) and would allow each MMA shareholder to receive a cash amount of approximately $1.70 (A$2.60) per share.
MMA Board’s Recommendation
The MMA board has unanimously recommended that shareholders vote in favor of the scheme, subject to certain conditions and the conclusion that the scheme is in the best interests of shareholders. Ian Macliver, MMA Chairman, highlighted the increased interest in MMA due to its strategic diversification, debt reduction, and improved earnings. He emphasized the compelling value of Cyan’s offer, which includes a 31% premium to the 90-day volume-weighted average share price.
Cyan’s Intentions and Goals
Cyan intends to retain MMA’s workforce and leverage its expertise, assets, and operating model to expand further into offshore wind support services. The goal is to continue providing a comprehensive suite of marine and subsea services to existing clients in the offshore energy and wider maritime industries. Cyan’s takeover offer is subject to customary conditions.
Shareholder Meeting and Advisers
MMA’s shareholders will have an opportunity to vote on the scheme at a meeting scheduled for late June to mid-July 2024. MMA has engaged Rothschild & Co. as its financial adviser and Thomson Geer as its legal adviser. Cyan, Cyan Renewables, and Seraya Partners are advised by UBS and Allens, respectively. The acquisition aligns with Cyan’s goal of owning and operating $1 billion in vessels over three years.
Favorable Market Conditions
As newbuild vessel orders are historically low, limited additional vessel supply is expected in the coming years due to strong demand from both the oil and gas and offshore wind sectors. This creates favorable market conditions for MMA Offshore, benefiting its fleet and subsea services offering.
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Source: Offshore Energy
