SINGAPORE – Corporate deals are returning to the Singapore offshore and marine sector on the back of rising energy prices and falling interest rates, and this has lifted prospects for the industry’s stocks.
Two such deals, involving Singapore Exchange-listed companies Dyna-Mac Holdings and Atlantic Navigation, took place in September, at a time when interest in the local stock market is picking up.
Mainboard-listed Dyna-Mac on Sept 11 received a voluntary conditional cash offer from Hanwha Ocean SG Holdings at 60 cents per share.
The offer price by the South Korean-controlled company represents a premium of 581.8 per cent over the lowest closing price of the Singapore company’s share price for the three-year period prior to the offer on Sept 18, and a discount of 2.4 per cent to the highest closing price of the shares during this period.
Under the deal, Hanwha must acquire more than 50 per cent of the total shareholding. At the time of the offer earlier this week, it held 25.36 per cent.
Meanwhile, in another largely unnoticed Sept 9 announcement, Atlantic Navigation said it had sold 20 of its offshore vessels for US$183 million (S$240 million) to MAG Offshore Investment.
Based on their net book value of US$162.4 million as at June 30, the proposed sale of the 20 vessels is expected to result in a gain on disposal of approximately US$20.6 million.
But what was more interesting is the indication that the Catalyst-listed company plans to do a significant payout to shareholders from the sale.
The company said net proceeds from the disposal would come up to US$180.8 million, where US$62 million would be distributed to Atlantic Navigation’s shareholders in shares, while another US$58 million will be paid out via a special interim dividend.
In short, shareholders stand to get
