Singapore player expanding its vessel fleet and shipping horizons with acquisition of MMA Offshore

Cyan MMA Holdings, a subsidiary of Seraya Partners’ Singapore-headquartered offshore wind vessel operator Cyan Renewables, has set the wheels into motion to acquire MMA Offshore, an Australian offshore vessel player, thanks to a binding scheme implementation deed (SID) for a proposed acquisition of 100% of the shares in MMA via a scheme of arrangement between the Australian firm and its shareholders.

This takeover deal, which values MMA equity on a fully diluted basis at approximately A$1.03 billion (over $671.5 million), if implemented, will enable each MMA shareholder on the scheme record date to receive a cash amount of A$2.60 (around $1.70) per share. The MMA board has unanimously recommended to the firm’s shareholders to vote in favor of the scheme in the absence of a superior proposal and subject to the independent expert concluding in its report that the scheme is in the best interests of the company’s shareholders.

Ian Macliver, MMA Chairman, commented: “There has been increased interest in MMA as our strategy to diversify our operations and deleverage the business, together with our improved earnings, has seen the share price rise more than 80% over the past 5 months. We have been in discussions with Cyan since October 2023 and the board has now reached 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 EBITDA. 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.”

Furthermore, Cyan intends to retain MMA’s workforce and utilize and grow the Australian firm’s expertise, assets, and operating model to expand further into offshore wind support services while continuing to provide a comprehensive suite of marine and subsea services to its existing clients in the offshore energy and wider maritime industries. The Singapore-based player’s takeover offer for MMA Offshore is subject to various customary conditions precedent.

Moreover, the Australian vessel operator’s shareholders will have an opportunity to vote on the scheme at a meeting, which will be held from late June to mid-July 2024. While MMA engaged Rothschild & Co. as its financial adviser and Thomson Geer as its legal adviser, UBS is acting as a financial adviser and Allens as a legal adviser to Cyan, Cyan Renewables, and Seraya Partners. This acquisition is aligned with the Singapore player’s goal of owning and operating $1 billion in vessels over three years.

“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,” added Mcliver.

As newbuild vessel orders are at a historic low and limited additional vessel supply is anticipated in the coming years due to strong demand from both the oil and gas and offshore wind sectors, MMA Offshore is expecting favorable market conditions to continue to bring benefits to its fleet and subsea services offering.

In November 2023, MMA Offshore got a hold of a contract to deliver a range of subsea services to support Timor Gap’s decommissioning activities in Timor-Leste.