Cyan Renewables buys Australian vessel operator MMA Offshore for A$1.1 bln (updated)

Scworx

25/07/2024 06:10

* 
      Largest Asia offshore wind energy service take-private
deal
    

        * 
      MMA shares up almost 44% this year
    

        * 
      Delisting to take effect on Friday
    

  
 (Adds MMA's stock exchange filing, shares suspension in
paragraph 4)
    By Yantoultra Ngui and Roushni Nair
       SINGAPORE, July 25 (Reuters) - Singapore's Cyan
Renewables, which operates vessels for offshore wind farms, said
on Thursday it has bought MMA Offshore for A$1.1 billion ($726
million) in the largest takeover deal in this renewables segment
in the Asia Pacific region so far this year.
    MMA  MRM.AX  shareholders will receive A$2.70 per share in
cash, a 36% premium over its 90-day average price, according to
a joint statement from Cyan and Australia-based MMA. 
    Cyan, which is backed by infrastructure investor Seraya
Partners, had initially offered A$2.60 per MMA share in March
before sweetening the offer last month.
    In a separate statement, MMA said the scheme of arrangement
between the company and its shareholders for Cyan's acquisition
has been implemented and the delisting of MMA is expected to
take effect on Friday.
    MMA's shares have climbed almost 44% this year, giving it a
market capitalisation of $702 million, LSEG data showed. 
    Renewable companies and assets have become increasingly
attractive as investors look to tap growth in the sector, driven
by a global drive to transition to zero-emission economies.
    The global wind farm market is projected to grow at a
compound annual rate of 21.4% by 2034, according to the
International Energy Agency.
    MMA, headquartered in Perth, Australia, operates 20 vessels
and has more than 1,100 employees in Singapore, Taiwan,
Malaysia, Dubai and Britain, according to its website.    
    "This move strengthens our position in the Asia-Pacific
region and solidifies our leadership in the offshore wind
industry and energy transition," said Lee Keng Lin, Cyan
Renewables' CEO.
    A group of co-investors supported the deal, with one of
them, Canadian investment manager AIMCo, also participating
through its investment in Cyan, the statement said.
    In January, Cyan agreed to acquire a 75% stake in UK-based
Sentinel Marine, a maritime environmental response vessel
operator, according to a press release at that time that did not
disclose financial details.   

    ($1 = 1.5158 Australian dollars)
    

 (Reporting by Yantoultra Ngui in Singapore and Roushni Nair in
Bengaluru; Editing by Janane Venkatraman and Miral Fahmy
)
 ((Yantoultra.Ngui@thomsonreuters.com;))