By Roshan Thomas and Yantoultra Ngui
(Reuters) -The largest shareholder of Singapore’s Dyna-Mac 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 and Hanwha Ocean, 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.
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)
