Hanwha Group has revised its offer for Dyna-Mac’s shares to 67 cents up from 60 cents previously.
The latest offer price exceeds all of Dyna-Mac’s closing share prices for the last 10 years including Sept 10, notes Hanwha’s statement dated Oct 14.
The offer is final, with Hanwha stressing that it does not intend to increase or revise the figure.
“In the event the offer is not successful, there is no assurance that [Dyna-Mac]’s share price will remain at current prevailing levels or that shareholders will be able to monetise their shares at the final offer price,” the group warned.
The 67-cent offer represents a premium of 584.4% over Dyna-Mac’s net asset value (NAV) of 9.79 cents as at June 30. It is also over 14 times the diluted earnings per share (EPS) for the 12 months ended June 30.
Furthermore, Hanwha’s latest offer represents an 18.6% premium to Dyna-Mac’s one-month volume weighted average price (VWAP) and 27.4%, 44.4% and 67.5% to the latter’s three-, six- and 12-month VWAPs.
Hanwha first announced its intention to buy over the shares it does not own in Dyna-Mac on Sept 11. At the time, the Korean-listed conglomerate offered 60 cents, which did not sit well with investors and analysts, including the estate of Dyna-Mac's founder, chairman and CEO, the late Desmond Lim Tze Jong.
On Sept 23, the estate issued a statement saying Hanwha's offer did not "adequately reflect" the Mainboard-listed company's value and growth potential offer. The estate then followed up on Oct 10, noting that the offer was not "compelling".
In April this year, Hanwha made an unsolicited, conditional and non-binding indicative proposal to acquire Austal's shares at A$2.825 ($2.48) apiece. The Australian-listed shipbuilder had rejected the A$1.02 billion takeover offer as it said that the offer was unlikely to be approved by Australian and US regulators due to the nature of Austal's business. Austal is also the defence prime contractor for the Australian and US Navy. The bid was dropped by Hanwha in September.
See also: Broadway Industrial Group offer turns unconditional; offer will now close on Dec 23
Shares in Dyna-Mac last traded at 65 cents before the company called for a trading halt in the afternoon of Oct 11.
Update
The estate of Dyna-Mac founder Desmond Lim says it intends to exercise its warrants in the company before the deadline at 5pm on Oct 22.
As at Oct 11, Dyna-Mac has some 73 million outstanding warrants, which are exercisable into new shares at an exercise price of 15 cents.
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.
Further to its statement, the estate says it remains "steadfast in its belief in the growth potential of Dyna-Mac".
As at the close of Oct 14, Hanwha has received valid acceptances of 284.2 million shares or 24.09% of the total number of shares in Dyna-Mac. This includes 282.9 million shares that were tendered in acceptance of the offer. Hanwha’s offer closes at 5.30pm on Nov 6.
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
- Dyna-Mac’s IFA deems offer to be ‘fair and reasonable’
- Estate of Dyna-Mac’s founding shareholder to accept Hanwha’s offer
- 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%
