Hanwha to take full control of S’pore Dyna-Mac with tender offer

South Korea’s chemicals-to-defense conglomerate Hanwha Group plans to acquire all shares it does not own in Dyna-Mac Holdings Ltd., a Singaporean offshore oil and gas contractor, through a tender offer of as much as 600 billion won ($447.8 million).

The group said on Wednesday that its defense and shipbuilding units Hanwha Aerospace Co. and Hanwha Ocean Co., which have already secured a combined 25.4% stake in Dyna-Mac, offered to buy the remaining stakes at S$0.60 ($0.46) per share and raise their holdings to 100%.

The buyout offer was at a 21.2% premium over Dyna-Mac’s last closing price. Its share price soared to as high as S$0.62 — the strongest since 2011 — Thursday morning on the Singapore Exchange.

The tender offer process is expected to be completed by the end of 2024, Hanwha Group said, adding that its units will conduct the offer through a special purpose company in Singapore.

To take control of the company, Hanwha Group needs to secure a more than 50% stake in Dyna-Mac through the tender offer and regulatory approval from the Singaporean authorities.

TO BOOST MARINE PLANT BUSINESS

Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering Co.,expected the takeover of Dyna-Mac to expand its offshore business production bases and marine factory business.

Net profit of the Singaporean designer and manufacturer of floating facilities nearly quadrupled to S$38.8 million in the first half of 2024 from S$10.2 million a year earlier as sales leaped 42.5% to S$259.3 million.

The company, founded in 1990, specializes in topside modules and facilities for the offshore oil and gas industry, such as floating production storage and offloading (FPSO) vessels, floating storage and offloading (FSO) vessels and floating liquefied natural gas (FLNG) vessels.

Dyna-Mac, which runs two production facilities in Singapore and one in China, is known for its top-caliber design capabilities, industry sources in Seoul said.

Write to Sang Hoon Sung at uphoon@hankyung.com
 
Jongwoo Cheon edited this article.