Singapore-based offshore wind vessel pure-play Cyan Renewables has sent an improved offer to buy 100% of shares in Perth-based OSV operator MMA Offshore.
Cyan, a subsidiary of Cyan Renewables, sent an initial offer to buy shares in the Australian company in March for AUD 2.60 ($1.73) per share. The takeover scheme values MMA’s equity at approximately AUD 1.03bn ($687m), on a fully diluted basis.
On Thursday, Cyan sent an increased offer by AUD 0.10 per share or AUD 2.70 ($1.80) cash per share. The improved proposal now values MMA’s equity on a fully diluted basis at approximately AUD 1.07bn ($713.7m), on a fully diluted basis.
According to the offer, this represents a 15% premium to the closing ASX market price of AUD 2.35 per MMA share on March 22, 2024 – the last trading day before the first offer was announced. This improved proposal is also Cyan’s best and final offer if no competing proposal is submitted.
Just like with the previous offer, the directors of MMA unanimously recommended that its shareholders vote in favour of the offer, in the absence of a superior proposal and subject to the independent expert continuing to conclude that the offer is in the best interests of MMA shareholders.
Major shareholder TIGA Trading and its associates have advised MMA that they will vote in favour of the improved offer.
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.
Following the first offer, the company board stated that the rationale behind its support of the offer 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.
