Dyna-Mac's founder accepts South Korean Hanwha's revised buyout offer (updated)

Hanwha Engine

05/11/2024 04:45

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      Founder holds 30.7% stake in Dyna-Mac, LSEG data show
    

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      Hanwha's offer unconditional as of acceptances end-Monday
    

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      Offer is conditional pending competition commission's
assessment
    

  
 (Adds context, details from a separate stock exchange filing,
from paragraphs 7 to 11)
    By Roshan Thomas and Yantoultra Ngui
       Nov 5 (Reuters) - The largest shareholder of Singapore's
Dyna-Mac  DMHL.SI  said on Tuesday it will tender its entire
stake in the oil contractor, following South Korean conglomerate
Hanwha Group's increased takeover offer of S$790.6 million
($599.44 million).
    The estate of founder Desmond Lim, Dyna-Mac's single largest
shareholder, did not find Hanwha's initial offer of S$0.60 per
share on Oct. 10 compelling, as it did not adequately reflect
the company's value and growth potential.
    On Oct. 15, Hanwha Group increased its bid to S$0.67 per
share for the remaining stake in Dyna-Mac.
    The sweetened takeover offer reflected a 35.4% premium over
Dyna-Mac's last traded price on Sept. 10, prior to Hanwha's
initial proposal.
    Lim's estate holds a 30.7% stake in Dyna-Mac, while Hanwha's
subsidiaries, Hanwha Aerospace  012450.KS  and Hanwha Ocean
 042660.KS , collectively own about 25%, LSEG data showed. 
    Acquiring Dyna-Mac would grant Hanwha access to the
company's two oil and gas manufacturing facilities in Singapore,
as well as its floating production storage and offloading (FPSO)
vessels.
    Hanwha, South Korea's seventh-largest conglomerate with
businesses ranging from aerospace to finance, has been actively
acquiring assets globally. 
    In June, it announced the $100 million acquisition of
Philadelphia-based Philly Shipyard. Four months before, it
completed the purchase of Korean marine engine company HSD
Engine and later renamed it Hanwha Engine  082740.KS .
    According to a separate stock filing by Dyna-Mac on Tuesday
before Lim's estate announcement, Hanwha had garnered 51.25% of
Dyna-Mac's total issued shares and about 50.94% of the maximum
potential issued share capital.
    Nevertheless, Hanwha's latest offer for Dyna-Mac must be
approved by the Competition and Consumer Commission of
Singapore. 
    Shares of Dyna-mac were 1.5% higher at S$0.665 on Tuesday
morning following the announcements. 

($1 = 1.3189 Singapore dollars)
    

 (Reporting by Roshan Thomas in Bengaluru and Yantoultra Ngui in
Singapore; Editing by Rashmi Aich and Nicholas Yong)
 ((Roshan.Thomas@thomsonreuters.com;))