Following approval from the Competition and Consumer Commission of Singapore (CCCS), Hanwha Group will implement a compulsory acquisition of Singaporean offshore shipyard Dyna-mac to expand and consolidate offshore capacity.
Dyna-mac announced on November 20 that Hanwha Group had held 92.22% of the company’s shares as of the 19th. According to the rules of the Singapore Stock Exchange, Hanwha Group can implement a compulsory acquisition of the remaining shares after holding more than 90% of the shares. It is understood that after the compulsory acquisition of all Dynamac shares, Hanwha Group plans to delist it.
Founded in 1990, Dyna-Mac is listed on the Main Board of the Singapore Stock Exchange and specializes in the engineering, procurement, construction, onshore pre-commissioning and commissioning of offshore modules and units such as FPSO, FSO, FLNG and FSRU. Dyna-Mac has two yards in Singapore.
Hanwha Group has been conducting a tender offer for Dyna-mac through its Singapore special purpose vehicle, Hanwha Ocean SG Holdings Ltd, to acquire its management rights.
In May this year, Hanwha Group acquired 23.91% of Dyna-Mac from Keppel for S$100 million, and on September 11, Hanwha announced plans to acquire the remaining shares in Dyna-Mac at a price of S$0.60 per share. However, Desmond Lim, Dyna-Mac’s largest shareholder and the company’s founder, rejected the offer, saying it was not attractive and had not taken into account the shipyard’s growth potential.
Subsequently, Hanwha Group announced that it would increase the acquisition price by another 11.7% to S$0.67 per share, a 35.4% premium to Dyna-Mac’s closing price of S$0.495 the previous day, and declared that this was the final offer. The price was accepted by Dyna-Mac’s major shareholders.
Hanwha Group said it aims to realize synergies through the acquisition of Dyna-mac, a shipyard specializing in the construction of upper modules for offshore facilities such as FPSOs and FSRUs. After acquisition of Dyna-mac, Hanwha Group can build the hulls of offshore facilities at Hanwha Offshore Geoje Shipyard in South Korea and the topsides modules at Dyna-mac in order to enhance construction efficiency and expand production capacity.
Through the synergy of Hanwha Offshore and Dyna-mac, Hanwha Group hopes to enhance its production capacity and technology as well as reduce costs in order to gain a competitive advantage in the offshore sector.