Hanhwa Group enters $448 million bid for controlling stake in Singapore plant manufacturer

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Hanhwa Group enters $448 million bid for controlling stake in Singapore plant manufacturer

Published: 12 Sep. 2024, 13:51 Updated: 12 Sep. 2024, 13:59

LEE JAE-LIM
lee.jaelim@joongang.co.kr

A floating offshore plant manufactured by Dyna-Mac Holdings transfers the topside structure. [DYNA-MAC]

Hanwha Group is seeking to acquire the management rights to Singapore-based Dyna-Mac Holdings, an offshore plant manufacturer, via a public tender offer totaling 600 billion won ($448 million).

The conglomerate said on Thursday that two of its affiliates, Hanwha Aerospace and Hanwha Ocean, will proceed with the acquisition through a special purpose company in Singapore.

Hanwha’s aerospace and shipbuilding units aim to invest 600 billion won through its tender offer to acquire more than 50 percent of the Singaporean company at a purchasing price of $0.6 per share.

The two companies already secured a 25.4 percent stake in the company for 115.8 billion won in May.

The tender offer is scheduled to conclude in December.

To successfully wrap up the acquisition, Hanwha Group also needs to earn antitrust approval from the Competition and Consumer Commission of Singapore.

The move is part of Hanwha’s efforts to expand production capacity in its offshore business, enabling it to keep up with increasing global demand. Hanwha expects the order of floating vessels to increase to 83 by 2030.

Dyna-Mac Holdings, founded in 1990, specializes in marine floating offshore plant structures and owns two manufacturing facilities in Singapore. Its flagship products are floating production, storage and offloading and floating liquefied natural gas.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]