Desmond Lim, the founder and largest shareholder of Singapore’s Dyna-mac, in which he holds a 30.7% stake, has agreed to accept Hanwha Group’s latest offer.This means that after a series of setbacks, Hanwha Group is close to completing its acquisition of the offshore shipyard.
Founded in 1990, Dyna-Mac is listed on the Main Board of the Singapore Exchange and specializes in the engineering design, procurement, construction of offshore modules and units such as FPSO, FSO, FLNG and FSRU as well as onshore pre-commissioning and trial operation. Dyna-Mac has two shipyards in Singapore.
As of now, Hanwha Group holds a 25.4% stake in Dyna-Mac, of which 23.91% is from Keppel. In May this year, Hanwha Group acquired 23.91% of Dyna-Mac shares from Keppel for S$100 million.
Hanwha Group unveiled its plan to acquire the remaining shares of Dyna-Mac on September 11 at a price of S$0.60 per share, a 21.2% premium to Dyna-Mac’s closing price on the same day. However, the price was rejected by Dyna-Mac’s largest shareholder and founder Desmond Lim, claiming that the offer was not attractive and did not take into account Dynamac’s growth potential.
Subsequently, Hanwha Group announced another 11.7% increase in the offer price to S$0.67 per share, a 35.4% premium to Dyna-mac’s closing price (S$0.495) the day before, stating that this was the final offer.
According to Reuters on Nov 5, Desmond Lim announced on the same day that he had agreed to accept Hanwha Group’s tender offer.
For Hanwha Group, if it obtains the operating rights of Dyna-mac, it can expand the production base of its offshore engineering business. However, a successful acquisition means that it needs to obtain more than 50% of Dyna-mac’s equity and obtain approval from Singapore’s competition regulator.