Hanwha Group issued a statement on Sept 25 to explain its rationale behind its offer price for Dyna-Mac.
The group, which is the substantial shareholder of Dyna-Mac, made a tender offer of 60 cents per share for the shares it does not own in the Mainboard-listed company on Sept 11.
So far, analysts covering the counter have asked shareholders to wait for a final offer. The sentiment is shared by the estate of Dyna-Mac’s founding shareholder, the late Desmond Lim Tze Jong. The estate said that Hanwha’s offer is not compelling and “does not adequately reflect” Dyna-Mac’s value and growth potential after its transformation into a global multi-disciplinary contractor.
In a Sept 25 statement, Hanwha said that its offer was based on a “rigorous review” of factors on Dyna-Mac’s business outlook, which includes the company’s growth prospects, order book, as well as geopolitical tensions and other macroeconomic uncertainties.
The Korean conglomerate added that its offer of 60 cents represents a 21% premium over the “undisturbed” last transacted price per share on Sept 10. The offer also represents 5.7 times of Dyna-Mac’s diluted net asset value (NAV) per share as at June 30, and 13.2 times Dyna-Mac’s diluted earnings per share (EPS) for the 12 months ended June 30.
An offer document, which will set out Hanwha’s rationale and intentions, will be released no later than Oct 2.
Shares in Dyna-Mac closed flat at 63 cents on Sept 25.
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
- 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’
- 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%
