Singapore-based Cyan Renewables, a portfolio company of Seraya Partners, has closed the agreement to acquire Australian offshore vessel player, MMA Offshore, adding 20 vessels to its fleet and gaining expertise in the Australian offshore wind market.
Taking this step, Cyan Renewables said it is set to become the “largest Asia Pacific (APAC) platform” for offshore wind energy services.
In April, Cyan Renewables started preparing the ground to acquire MMA Offshore, thanks to a binding scheme implementation deed (SID) for a proposed acquisition of 100% of the shares in MMA via a scheme of arrangement between the Australian firm and its shareholders.
Cyan Renewables has acquired MMA Offshore for A$1.1 billion (approximately $702 million). MMA shareholders will receive A$2.70 (approximately $1.78) per share in cash, a 36% premium over the 90-day volume-weighted average share price.
Cyan Renewables and Seraya Partners initially approached the Australian-listed company in October last year and finalized the deal this month with support from shareholders.
A group of co-investors, including the Alberta Investment Management Corporation (AIMCo), supported the acquisition. AIMCo, which opened its Singapore office in September 2023, participated in the MMA acquisition through its investment in Cyan.
James Chern, Managing Partner and CIO of Seraya Partners, Cyan’s main investor, said, “The new deal is transformative and reflects our ability to build and create platforms from scratch, spanning from Asia to Europe. With Cyan’s acquisition of Sentinel in the UK and now MMA in Australia, we are rapidly establishing world-class leaders in new, fast-growing sectors.”
Cyan Renewables aims to support the growth of offshore wind projects in Asia and globally, contributing to the global shift towards sustainable renewable energy, said the company.
“The acquisition of MMA is a significant milestone for our future as a leader in the renewable energy space. This move strengthens our position in the Asia-Pacific region and solidifies our leadership in the offshore wind industry and energy transition,” said Keng Lin Lee, Chief Executive Officer of Cyan Renewables.
“This acquisition brings extensive maritime services expertise and a strong operational presence in key markets such as Australia and the broader APAC region.”
Cyan plans to retain MMA’s workforce and leverage and expand its expertise, assets, and operating model to further penetrate the global and Asian offshore wind support services market. Aside from supporting its existing clients in the offshore energy and maritime industries with its marine and subsea services, Cyan said it will pursue growth through mergers, acquisitions, and organic expansion.
According to Cyan, MMA will benefit from its experience in offshore wind farms, including installation, operations and maintenance (O&M) to improve services and operational efficiencies.
MMA Offshore reported strong demand for its vessels and services in the first FY2024 half-year. With newbuild vessel orders at a historic low and limited additional vessel supply expected in the coming years, MMA Offshore anticipates favorable market conditions benefiting its fleet and subsea services due to strong demand from the oil, gas, and offshore wind sectors.
In November 2023, MMA Offshore secured a contract to deliver a range of subsea services to support Timor Gap’s decommissioning activities in Timor-Leste.