South Korean shipbuilder Hanwha Ocean and group affiliate Hanwha Aerospace have made an offer to take over Singapore-listed offshore structures engineering and construction specialist Dyna-Mac Holdings to grow the shipyard’s expertise.
Parent Hanwha Group said the two companies made a tender offer for the shares of Dyna-Mac Holdings to secure management control. The pair has invested KRW 116bn ($86.4m) as of May to secure a 25.4% stake.
The purchase price is set at SGD 0.60 ($0.50) per share. For the tender, Hanwha Aerospace and Hanwha Ocean will provide funding of up to approximately KRW 600bn, assuming 100% ownership at the close of the offer.
The offer is conditional on a minimum acceptance of more than 50% of shares in Dyna-Mac and a favourable anti-trust decision from the Competition and Consumer Commission of Singapore.
Dyna-Mac Holdings, which was founded in 1990, specialises in marine plant topside structures and has two manufacturing facilities in Singapore.
The company has construction capabilities for its core products, including floating production, storage and offloading, floating LNG production units, floating storage and offloading vessels, and floating storage and regasification units.
“Global demand for floating offshore plants is increasing, with 83 FPSOs expected to be ordered by 2030,” Hanwha Group said.
“Securing control of Dyna-Mac Holdings will enable Hanwha Ocean to realise synergies that can be created, including economies of scale, improvement of productivity and cost efficiency as well as the strengthening of domain knowledge, such as engineering competencies, know-how and best practices.”
Dyna-Mac Holdings generated revenues of KRW 266.6bn and net income of KRW 39.8bn in the first half of this year.
The tender offer process is expected to be completed by end-2024.
