South Korean firm Hanwha Group announced on Sept. 12 that it plans to acquire all of the shares not already held by Singaporean offshore facilities maker Dyna-Mac for 600 billion won ($447.8 million).Dyna-Mac has a market valuation of S$669.2 million ($513.1 million).
As of today, Hanwha Group’s shareholding in Dyna-Mac stands at 25.4%. In May this year, Hanwha Group acquired all of its shares in Dyna-Mac from Keppel for S$100 million ( $76.68 million), which are held by Hanwha Group’s shipbuilding subsidiaries Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engneering) and Hanwha Aerospace, respectively.
Under Hanwha Group’s latest acquisition plan, Hanwha Ocean and Hanwha Aerospace will acquire management control of Dyna-Mac through a cash offer by a special purpose company in Singapore, with the transaction expected to close by the end of 2024. The offer price of S$0.6 per share represents a 21.2% premium to Dyna-Mac’s last closing price. The acquisition is subject to approval from the local antitrust authorities.
Established in 1990 and listed on the Main Board of the Singapore Exchange, Dyna-Mac is a global multi-disciplinary contractor specialising in the engineering, procurement, fabrication, construction and onshore pre-commissioning & commissioning of offshore topside modules and facilities for FPSOs (floating production storage and offloading vessels), FSOs (floating storage and offloading vessels), FLNGs (floating liquefied natural gas vessels), and FSRUs (floating storage and regasification units). The company has two offshore shipyards in Singapore and has established joint ventures and partnerships with shipyards in China, Malaysia and the Philippines.
In April this year, Dyna-Mac announced that it had been awarded a contract for the construction of process modules, which it described as “the largest contract ever won, involving a record tonnage and number of process modules in a single contract”, with a delivery period to 2026. With this contract, Dyna-Mac’s net order book reached a record S$896 million.
Hanwha Group said the acquisition will help Hanwha Ocean effectively respond to the global market environment and expand its offshore equipment business internationally.