In the offer document dated Oct 2, Hanwha Group has kept its offer price of 60 cents for Dyna-Mac’s shares, although it has not said this is the final offer. However, as of Oct 2, no third party has announced an offer for Dyna-Mac. The offer currently represents the only offer available for acceptance by shareholders.
Hanwha has said it intends to keep Dyna-Mac listed. According to the independent financial advisor's (IFA) letter for the non-privatisation mandatory general offer for Datapulse Technology BKW , the average premiums / (discount) to the one-, three-, six- and 12-month volume weighted average prices (VWAPs) for all non-privatisation offers on the Singapore Exchange S68 (SGX) from 2020 to 2023 across 17 deals, are (1.5)%, (1.5)%, (0.1)% and 8.9% respectively. As such, Hanwha’s offer price, in this case, represents a 6.2%, 14.1%, 29.3% and 50% premium over the one-, three-, six- and 12-month VWAP, respectively.
Currently, analysts from Maybank Securities, OCBC Investment Research (OIR) and Lim & Tan Securities have recommended investors “wait” for the final offer. At the same time, they have maintained their “buy” call on the company. The Edge Singapore's own analyst has said Dyna-Mac's intrinsic value is 61 cents.
Of note is that last month, Hanwha dropped its bid for Australian Securities Exchange (ASX)-listed Austal. On Sept 25, in a letter, Hanwha CEO Hyek Woong Kwon cited Austal's unexpected demands and lack of cooperation as key reasons for terminating discussions, Australian media reported.
Currently, Hanwha has irrevocable undertakings for 24.31% of Dyna-Mac. That leaves 25.69% of Dyna-Mac it does not own, to get to the 50% threshold, failing which shareholders who have accepted the offer will have their shares returned.
Hanwha Group says it intends to work with the company to “extend the reach of digital transformation into yards, bringing to life smart yards, while delivering low and zero-carbon solutions that can power the energy transition”, subject to the success of the offer.
Additionally, Hanwha’s offer comes on the back of its consideration of macroeconomic uncertainties. In the face of existing volatility risks, Hanwha adds that it believes “in the need for a patient and sustainable approach to the company’s growth by targeting market opportunities in energy transition more broadly”.
If successful, Hanwha’s acquisition will enable the company to advance new technologies and investments in the Singapore energy market, the offer document says.
The offer closes at 5.30pm on Oct 30.
See also: Broadway Industrial Group offer turns unconditional; offer will now close on Dec 23
Shares in Dyna-Mac closed flat at 63 cents on Oct 2, which is above the high reached in 2011 when Brent crude hit US$111 per barrel.
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
- 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%
