South Korea’s chemicals-to-defense conglomerate Hanwha Group plans to acquire all shares it does not own in Dyna-Mac Holdings Ltd., a Singaporean offshore oil and gas contractor, through an up to 600 billion won ($447.8 million) tender offer, according to the company's release.
The group said on Wednesday its defense and shipbuilding units Hanwha Aerospace Co. and Hanwha Ocean Co., which have already secured a 25.4% stake in Dyna-Mac together, offered to buy the remaining stakes at S$0.60 ($0.46) per share and raise their holdings to 100%.
The buy-out offer was at a 21.2% premium over Dyna-Mac’s last closing price. Its shares soared to as high as S$0.62, the strongest since 2011, on Thursday morning on the Singapore Exchange.
The tender offer process is predicted to be completed by the end of 2024, Hanwha Group said, adding that its units will conduct the offer through a special purpose company in Singapore.
Hanwha Group needs to secure more than a 50% stake in Dyna-Mac through the tender offer and regulatory approval from the Singaporean competition authorities to take control of the company.
Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering Co. expected the takeover of Dyna-Mac to expand offshore business production bases and the marine plant business.
The Singaporean floating facility designer and manufacturer’s net profit nearly quadrupled to S$38.8 million in the first half of 2024 from S$10.2 million a year earlier as sales jumped 42.5% to S$259.3 million.
The company founded in 1990 specializes in topside modules and facilities for the offshore oil and gas industry such as floating production storage and offloading (FPSO) vessels, floating storage and offloading (FSO) vessels and floating liquefied natural gas (FLNG) vessels.