An independent assessment of Singaporean firm Cyan Renewables’ $1 billion move for MMA Offshore has deemed the offer fair and reasonable, despite rumoured opposition from a major shareholder.
An independent assessment of Singaporean firm Cyan Renewables’ $1 billion move for MMA Offshore has deemed the offer fair and reasonable, despite rumoured opposition from a major shareholder.
A representative from investment management firm Pendal Group was quoted in the Australian Financial Review after the offer was announced in May, claiming Cyan’s move undervalued MMA’s future growth plans.
The comments came after MMA’s board endorsed the move by Cyan, which is interested in growing its offshore wind division by acquiring MMA’s fleet of around 20 vessels.
Its $1.03 billion offer for all equity in MMA – broken down to $2.60 per share – represented an 11 per cent premium to the closing day share price of $2.35 on 22 March.
It was a 31 per cent premium to the company’s longer-term 90-day volume weighted average price of $1.98 per share, and a 91 per cent premium to the value of MMA’s net tangible assets at the end of 2023.
The independent experts report, prepared by the WA branch of BDO Corporate Finance, backed the board’s view on the offer.
“The independent expert has concluded that the scheme is fair and reasonable, and in the best interests of shareholders in the absence of a superior proposal,” MMA said.
BDO deemed the value of an MMA share to sit in the range of $2.03 to $2.83m with a preferred value of $2.41 – 19c lower than the cash offer from Cyan.
MMA shares are currently trading at $2.64, having come off 2.2 per cent in early trade today.
Cyan and MMA have been in discussion since October last year, with the Singapore firm planning to retain MMA’s workforce and expand its offshore wind services alongside marine and subsea services to existing clients.
MMA’s main line of business is currently in the offshore oil and gas space.
Shareholders will vote on the scheme at a meeting on Saturday, June 29, with the deal needing 75 per cent of votes cast to get over the line.
A deal for Perth-based would also need approval from the Foreign Investment Review Board.
