Date of Report
17 September 2024

Broker
Maybank Research Pte. Ltd.

Voluntary Conditional Cash Offer

Dyna-Mac has received a voluntary conditional cash offer from Hanwha Ocean SG Holdings. The offer price is set at SGD 0.60 per share and is conditional upon Hanwha obtaining more than 50% of Dyna-Mac’s total shareholding.

Fairness of the Offer

Maybank Research views the offer as fair but at the lower end of Dyna-Mac’s fair value range. The target price set by Maybank for Dyna-Mac is SGD 0.64, which suggests there may be room for an improved offer.

Recommendation to Shareholders

Given the current offer is not final, Maybank Research recommends that shareholders wait for a potential revised offer closer to or above the target price of SGD 0.64.

Confidence in Dyna-Mac’s Outlook

The confidence in Dyna-Mac’s prospects is supported by the robust outlook for floating production storage and offloading (FPSO) units and Dyna-Mac’s strong net cash position.