Hanwha Aerospace·Hanwha Ocean
Aiming to Secure Management Rights of Dynamac
The topside structure of an offshore plant is being transported at the Dynamac yard in Singapore. Photo by Dynamac website
Hanwha Group is launching a tender offer for shares of Dyna-Mac Holdings Ltd (Dyna-Mac), a Singapore-based manufacturer specializing in floating offshore facilities. Hanwha Aerospace and Hanwha Ocean plan to secure management control of Dyna-Mac through this tender offer.
Hanwha Aerospace and Hanwha Ocean will conduct the tender offer through a special purpose company (SPC) established locally in Singapore. The offer price is set at 0.6 Singapore dollars per share (approximately 616 KRW). To complete this tender offer, Hanwha Aerospace and Hanwha Ocean plan to invest about 600 billion KRW (assuming 100% stake acquisition).
By May, Hanwha Aerospace and Hanwha Ocean had already invested 115.8 billion KRW to acquire a 25.4% stake in Dyna-Mac.
For Hanwha to succeed in the tender offer, it must acquire more than 50% of Dyna-Mac’s shares and obtain approval from Singapore’s competition authorities.
Founded in 1990, Dyna-Mac is a specialist company in offshore plant topside structures, operating two production sites in Singapore. It possesses excellent construction capabilities for key products such as Floating Production Storage and Offloading (FPSO) units and Floating Liquefied Natural Gas (FLNG) units. Based on these capabilities, Dyna-Mac recorded sales of approximately 266.6 billion KRW and net profit of about 39.8 billion KRW in the first half of this year, achieving a profit margin close to 15%.
Globally, demand for floating offshore plants is increasing, with an estimated 83 FPSO orders expected by 2030. If Hanwha Ocean secures management control of Dyna-Mac, it will be able to effectively respond to global market conditions through a multi-yard strategy that expands production bases in the offshore business sector. Additionally, it plans to actively expand its offshore plant business by leveraging higher quality and cost competitiveness compared to competitors.
The tender offer process will begin after disclosure on the Singapore Exchange and is expected to be finalized by December.
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