South Korean firm to acquire full ownership of Singaporean offshore vessel builder

South Korean conglomerate the Hanwha Group has unveiled its plans to acquire the remaining shares in Singapore-based shipbuilder Dyna-Mac Engineering Services for approximately US$450 million.

Hanwha currently has a 25.4 per cent stake in Dyna-Mac. Under Hanwha's latest acquisition plan, Hanwha Ocean and Hanwha Aerospace will make a cash acquisition through a special purpose vehicle in Singapore to gain management control of Dyna-Mac. This transaction is scheduled to close by the end of 2024.

The offer price is SG$0.60 (US$0.46) per share, representing a 21.2 per cent premium over Dyna-Mac's last closing price. The acquisition is subject to approval by local antitrust authorities.

Founded in 1990, Dyna-Mac specialises in engineering, procurement, construction, onshore pre-commissioning, and commissioning of offshore modules and units such as floating production storage and offloading units (FPSOs), floating storage and offloading units (FSOs), floating liquefied natural gas storage facilities (FLNGs), and floating storage and regasification units (FSRUs).

The company owns two offshore shipyards in Singapore and has established joint ventures and partnerships with shipyards in China, Malaysia, and the Philippines.