Singapore-based offshore wind vessel pure-play Cyan Renewables has made an offer to buy 100% of shares in Perth-based OSV operator MMA Offshore.
Cyan, a subsidiary of Cyan Renewables, offered to buy stakes in the Australian company for AUD 2.60 ($1.7) per share. The takeover scheme values MMA’s equity at approximately AUD 1.03bn ($671.4m), on a fully diluted basis.
The offered price share is an 11% premium to the closing share price of AUD 2.35 per MMA share on March 22 and a 91% premium to the company’s net tangible assets on December 31, 2023.
Cyan intends to retain MMA’s workforce and utilise its assets to further expand into offshore wind support services while continuing to provide marine and subsea services to existing clients in the offshore energy and maritime industries.
The MMA board has stated that it unanimously recommends that its shareholders vote in favour of the acquisition scheme in the absence of a superior proposal at a meeting set to approve the scheme. The meeting will take place between late June and mid-July 2024.
For the takeover scheme to proceed, it must be approved by at least 75% of all votes cast by MMA shareholders and – unless waived by the court – a majority by the number of all MMA shareholders present and voting, in person or by proxy, at the meeting.
The company board added that the takeover scheme was in the best interest of MMA shareholders and that each director of the company would vote in favour of the sale.
The MMA board’s rationale stems from the fact that the price per share includes a premium to the recent trading price of MMA shares and that the sale of the shares removes risks associated with operating in a cyclical industry.
“There has been increased interest in MMA [since our improved earnings increased the share price by] more than 80% over the past five months. We have been in discussions with Cyan since October 2023, and the board has now reached the required level of confidence to enter the scheme implementation deed. MMA provides Cyan with exposure to Asia and Australia as it pursues equity investment to create a leading global energy transition-focused offshore marine business,” said MMA chairman Ian Macliver.
This is not the first acquisition Cyan Renewables has made in 2024 as it acquired a 75% stake in offshore support vessel specialist Sentinel Marine earlier this year.
