Hanwha announces tender offer for Dyna-Mac Holdings shares
Hanwha Aerospace and Hanwha Ocean aim to secure management control of Dyna-Mac, an offshore plants manufacturer, at SG$0.6 a share
Topside structure of an offshore plant manufactured by Dyna-Mac Holdings
Hanwha announced a tender offer for the shares of Dyna-Mac Holdings Ltd., a company listed on the Mainboard of the Singapore Exchange Limited, at SG$0.6 ($0.46) a share. Hanwha Aerospace and Hanwha Ocean intend to secure management control through the offer, having already invested KRW 116 billion ($86.9 billion) this May to secure a 25.4% stake in the company.
Hanwha Aerospace and Hanwha Ocean will conduct the tender offer through a local special purpose company (SPC) in Singapore. The two businesses will fund up to approximately SG$ 586 million1 ($450 million), if they acquire 100% of the shares at close of offer.
The tender offer is conditional upon a minimum acceptance condition of more than 50% of the shares in Dyna-Mac, including all shares owned by the offeror and its concert parties, and a favorable anti-trust decision from the Competition and Consumer Commission of Singapore (CCCS). With United Overseas Bank Limited acting as the financial advisor for the transaction, the tender offer process is expected to be completed by the end of this year.
The first FLNG manufactured by Hanwha Ocean
With global demand for floating offshore plants expected to rise, including a forecast of 83 Floating Production, Storage, and Offloading (FPSO) orders by 2030, securing control of Dyna-Mac Holdings would enable Hanwha Ocean to realize synergies that can be created. This includes creating economies of scale, improving productivity and cost efficiency, and strengthening engineering competencies and best practices.
Founded in 1990, Dyna-Mac Holdings specializes in marine plant topside structures and has two manufacturing facilities in Singapore. The company has excellent construction capabilities for its core products, including FPSO and Floating Liquefied Natural Gas (FLNG) units. Based on these capabilities, the company generated revenues of SG$ 260 million ($200 million) and net income of SG$ 38.8 million ($29.8 million) in the first half of this year alone. This resulted in a net profit margin of nearly 15%, according to financial statements released by Dyna-Mac Holdings for the first half of 2024.
1 Based on the exchange rate of KRW 1,025.97/SGD
Hanwha Aerospace
Founded in 1977, Hanwha Aerospace has become a leading company in the aerospace industry in South Korea. Today, Hanwha Aerospace’s products serve not only aerospace but also the defense and marine sectors. With an unwavering focus on customer-centric quality management, technological innovation, and product competitiveness reinforced by advanced technologies, Hanwha Aerospace is surging forward as a global leader in the burgeoning space and aerospace business as well as in the land, sea, and air defense industries.
For more information, visit: www.hanwhaaerospace.co.kr/eng/
Hanwha Ocean
Hanwha Ocean is a leading global company with extensive expertise and experience in the shipbuilding and offshore industry. Boasting the world’s most competitive LNG carriers built with eco-friendly and highly efficient technology, the company has continuously pioneered new businesses since 1973, producing a vast range of vessels, including commercial ships, drillships, and specialty ships. Hanwha Ocean will be at the forefront of pioneering advanced marine solutions for decarbonization and further expand Hanwha’s green energy ecosystem to create positive, sustainable change throughout the world.
For more information, visit: www.hanwhaocean.com
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