By Yantoultra Ngui and Roushni Nair
SINGAPORE (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 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)
