The estate of Dyna-Mac’s founding shareholder, Desmond Lim Tze Jong, has decided to accept Hanwha’s offer.
On Nov 5, the estate said it will tender its full stake in Dyna-Mac following the Korean group’s revised offer of 67 cents per share.
The news came shortly after Hanwha Group’s offer for Dyna-Mac turned unconditional with the former having a stake of over 50% as at Nov 4.
The estate previously said Hanwha’s initial offer price of 60 cents was not compelling, but announced that it intended to exercise its warrants in Dyna-Mac.
In its Oct 14 statement, the estate says it will need to divest a portion of its shares before exercising its warrants to avoid triggering an obligation for the estate to make a mandatory general offer for Dyna-Mac. Under Singapore's Take-over Code, a person or party is required to make a general offer for a publicly-listed company if he, she or it acquires 30% or more of the voting rights of the company. The same rule applies if the person or party holds between 30% to 50% of the company's voting rights and he, she or it increases its voting rights by over 1% within any six-month period.
At the time, the estate said it remains "steadfast in its belief in the growth potential of Dyna-Mac".
On Oct 23, Dyna-Mac's independent financial advisor (IFA), ZICO Capital, announced that Hanwha's revised offer of 67 cents was “fair and reasonable” and recommended the company's shareholders to "accept" the offer.
As at 9.32am, shares in Dyna-Mac are trading 1 cent higher or 1.53% up at 66.5 cents.
See also:
- Hanwha Group makes tender offer of 60 cents per share for Dyna-Mac (update)
- ZICO Capital appointed as IFA for Dyna-Mac's offer
- Estate of Dyna-Mac’s founding shareholder does not find Hanwha’s cash offer compelling
- Hanwha Group explains rationale behind Dyna-Mac’s offer price
- Standoff as Hanwha keeps 60 cents offer price for Dyna-Mac in offer document
- Estate of Dyna-Mac’s founding shareholder issues follow-up statement after offer document
- Hanwha Group announces ‘final offer’ of 67 cents for Dyna-Mac (update)
- Dyna-Mac’s IFA deems offer to be ‘fair and reasonable’
- Hanwha Group's offer for Dyna-Mac turns unconditional with acceptances; offer to remain open till Nov 20
- CCCS clears proposed acquisition of Dyna-Mac by Hanwha Ocean
- Hanwha to exercise compulsory acquisition rights after stake in Dyna-Mac crosses 90%
