Hanwha Group Increases Tender Offer for Shares of 'Dynamac Holdings'

The world's first FLNG facility built by Hanwha Ocean. Photo by Hanwha Ocean

Hanwha Group has decided to raise the tender offer price for shares of Dyna-Mac Holdings Ltd (Dyna-Mac), a Singapore-based floating offshore facility manufacturer, to 0.67 Singapore dollars (approximately 696 KRW).

Initially, Hanwha Aerospace and Hanwha Ocean had been pursuing a tender offer for Dyna-Mac shares at 0.60 Singapore dollars (approximately 623 KRW) per share through a local SPC (Special Purpose Company) in Singapore since the 11th of last month.

To facilitate a smooth tender offer process and secure management control, Hanwha Group increased the purchase price by 0.07 Singapore dollars about a month after initiating the tender offer, changing it to 0.67 Singapore dollars. They also announced that there will be no further price increases. This represents an 11.7% premium over the original tender offer price and a 35.4% premium over the closing price of 0.495 Singapore dollars on the day before the tender offer was announced.

For Hanwha to succeed in the tender offer, it must acquire more than 50% of Dyna-Mac shares and obtain approval from Singapore’s competition authorities. So far, Hanwha Aerospace and Hanwha Ocean have invested 115.8 billion KRW to secure a 24.0% stake in Dyna-Mac.

A Hanwha Group official stated, "If we secure management control of Dyna-Mac, Hanwha Ocean is expected to effectively respond to the rapidly changing global market environment through a multi-yard strategy that expands production bases in the marine business sector."