The private equity-backed suitor of takeover target MMA Offshore has been forced to increase its offer.
Singapore’s Cyan Renewables has boosted its offer by AUD 0.10 per share to AUD 2.70 ($1.80) per share for the Australian-listed offshore energy maintenance contractor.
The improved proposal values MMA’s equity on a fully diluted basis at around AUD 1.07bn, Cyan Renewables said — AUD 400m higher than its original bid.
In a statement on Thursday, Cyan declared the improved proposal is its “best and final offer”, in the absence of a competing deal.
Shares in ASX-listed MMA Offshore were suspended on Tuesday ahead of the announcement and resumed trading on Thursday.
MMA’s board has given its unanimous approval for the takeover offer, claiming the deal is in the best interests of shareholders.
For its money, Cyan will secure a fleet of 20 offshore ships, including large multipurpose support and platform supply vessels, and midsize anchor-handling tug supply units.
It also buys a company with an established record and lucrative long-term contracts in the cabotage-protected Australian offshore market.
The takeover is subject to regulatory and shareholder approval, with a timeline set for completion next month.
Rothschild & Co is acting as MMA’s financial adviser and Thomson Geer as its legal adviser for the transaction.
UBS is acting as financial adviser and Allens as legal adviser to Cyan Renewables and its shareholder Seraya Partners, which launched Cyan Renewables in 2022 with an aim to invest $1bn in the offshore sector, focusing primarily on offshore wind assets.
MMA Offshore said in a trading update last week that its earnings visibility and performance across the second half of the financial year “continued to improve”.
It now expects the last quarter of the financial year to “outperform its previous earnings guidance”.
“The business is focusing on building its backlog of contracted work for 2025 and securing longer-term contract positions to improve the overall stability of earnings for the coming years,” it said.
Shares in MMA Offshore were down AUD 0.05, or 2%, to AUD 2.635 in late trading on Thursday.
