Hanwha all done with Singaporean FPSO player takeover

South Korea’s shipbuilder Hanwha Ocean has closed its acquisition of Singapore-based offshore builder Dyna-Mac, which specializes in manufacturing marine plant topside structures for floating production, storage, and offloading (FPSO) and floating liquefied natural gas (FLNG) units.

The deal was closed on November 20, 2024, when Hanwha Ocean agreed to acquire approximately 95.15% of the total issued shares of Dyna-Mac through open market purchases on the Singaporean Exchange. Since the percentage of the total number of issued shares held in public hands has dropped below 10% – known as the free float requirement – their trading on the Singapore Exchange will be suspended. 

The South Korean shipbuilder first made its intention known in September, offering to buy a 25.4% stake in the Singaporean firm for approximately $0.46 per share. The offer was boosted to $0.51 per share a month later after Dyna-Mac’s largest shareholder considered the previous offer uncompelling. In late October, the firm’s independent directors recommended that shareholders accept Hanwha’s offer.

Hanwha intends to use its right to compulsorily acquire the shares of the dissenting shareholders not acquired under the offer, after which Dyna-Mac will be delisted from the Singaporean Exchange. The deal is said to be in line in line with the shipbuilder’s multi-yard strategy to expand its presence in “strategic locations,” including Singapore, Korea, the United States, and China. 

The acquisition is expected to increase the Singaporean player’s productivity and efficiency and strengthen its domain expertise, giving it access to new technologies and investments in Singapore’s energy market. Hanwha says it wants to empower Dyna-Mac to deepen its local competitiveness while accelerating its international expansion. 

The South Korean player also aims to make Dyna-Mac more resilient to the impacts of rising competition and market uncertainty by combining resources, optimizing operational efficiencies, and offering more opportunities for investment in research and development, driving technological advancements.

Alongside acquisition matters, Hanwha has been busy wrapping up work on a field control station (FCS), destined for Chevron’s subsea gas compression development off the coast of Western Australia – the Jansz-Io compression (J-IC) project.

The shipbuilder also won approvals in principle (AIP) for the preliminary front-end engineering design (pre-FEED) of a standard FPSO facility from the American Bureau of Shipping (ABS) and Bureau Veritas (BV).

The concept entails a 340-meter-long and 62-meter-wide vessel with a daily crude oil production capacity of 190,000 barrels and the ability to store around 2.38 million barrels of crude oil.