Cyan Renewables makes $1b takeover bid for MMA Offshore
Singapore-based Cyan Renewables has launched a major takeover bid for Australian offshore support specialist MMA Offshore (ASX: MRM).
The MMA Offshore board has unanimously recommended that the company’s shareholders vote in favour of the scheme implementation agreement, which values MMA Offshore equity on a fully-diluted basis at approximately $1.03 billion.
If the scheme is implemented, MMA Offshore shareholders will receive a cash amount of $2.60 per MMA Offshore share, an 11% premium to the closing share price on 22 March 2024 of $2.35.
Cyan MMA Holdings has been incorporated by Cyan Renewables as the acquisition vehicle for MMA Offshore’s shares pursuant to the scheme.
Specialist vessel operator
Fully-owned by Seraya Partners, Cyan Renewables is an Asian specialist vessel operator supporting the region’s fast-growing offshore wind farm industry.
Seraya Partners is Asia’s first independent next-generation infrastructure fund manager investing in digital infrastructure and energy transition sectors.
MMA Offshore is one of Australia’s leading vessel operators supporting the oil and gas and renewable energy sectors.
Turnaround story
Company chair Ian Macliver said the Cyan takeover offer comes as the offshore support sector and MMA Offshore are achieving a strong turnaround.
“There has been increased interest in MMA as our strategy to diversify our operations and de-leverage the business, together with our improved earnings, has seen the share price rise more than 80% over the past five months,” Mr Macliver said.
He said MMA has been in discussions with Cyan since October 2023, with the board now reaching the required level of confidence to enter into the scheme implementation deed.
“We believe Cyan’s offer provides compelling value for MMA today, representing a 31% premium to the 90-day volume weighted average share price, a 91% premium to the company’s net tangible asset value and a 7.7x earnings multiple based on annualised first half FY24 earnings before interest, taxes, depreciation and amortisation.”
“The MMA board believes that the scheme is in the best interests of shareholders, providing certainty in the form of a cash payment to shareholders while removing the risks associated with operating in a cyclical industry.”
Broadening regional exposure
It has been confirmed that Cyan intends to retain MMA Offshore’s workforce, clients, sites and contracts and to invest capital in growing the business.
“MMA provides Cyan with exposure to Asia and, importantly, Australia as Cyan pursues equity investment to create a leading global energy transition-focused offshore marine business,” Mr Macliver said.
MMA Offshore shareholders may vote on the scheme at a special meeting which is anticipated to be held in late-June to mid-July 2024.
For the scheme to proceed, in addition to satisfying the other conditions precedent, it must be approved by at least 75% of all votes cast by MMA Offshore shareholders.