Singapore offshore and hotel tycoon Michael Kum has thrown his weight behind the takeover bid for Australia’s MMA Offshore.
The billionaire’s Halom Investments has said it intends to vote in favour of the deal in the absence of a superior offer, according to a regulatory filing.
The Singapore-based holding company is said to control a 7.7% stake in MMA Offshore, making it the largest shareholder.
Kum is a veteran of the Singapore offshore scene, having established Miclyn Holdings, which later became Miclyn Express Offshore, in 1976. It was listed on the Australian Stock Exchange until 2013 before being bought out by private equity players Champ Private Equity and Hong Kong’s Headland Capital Partners.
Kum, whom Forbes estimates to be worth $1.1bn, has had his run-ins over the years with the management of MMA Offshore, including trying to block a major share issue in 2017.
Halom, which had built an 18% stake in MMA, also tried to remove then-chief executive Jeff Weber and chairman Tony Howarth from the board.
Singapore’s Cyan Renewables launched a $680m takeover bid for the Australian-listed offshore energy maintenance contractor last month.
However, the private equity-backed company was forced to increase its offer last month to try to get the deal over the line, increasing it by AUD 0.10 per share to AUD 2.70 ($1.80) per share.
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.
Cyan Renewables declared the improved proposal its “best and final offer”, in the absence of a competing deal.
For its money, Cyan Renewables will secure 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 for completion this month.
