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Singapore-based offshore wind vessel pure-play Cyan Renewables has acquired Perth-based OSV operator MMA Offshore for AUD 1.1bn ($702m).
According to a statement by the two companies, this transaction marks the region’s largest take-private deal in the offshore wind energy services industry.
MMA shareholders will receive AUD 2.70 ($1.78) per share in cash, representing a 36% premium over the 90-day volume-weighted average share price. MMA’s projected EBITDA is AUD 146m – 149m for the 2024 fiscal year which is more than a 110% increase over the previous year.
It did take sweetening up the deal for the acquisition to go through as the first offer for MMA of AUD 2.60 per share was shot down by the Australian firm.
The acquisition was supported by a group of co-investors including the Alberta Investment Management Corporation and Singaporean business magnate Michael Kum who holds a stake in MMA via his vehicle, Halom Investments.
Cyan plans to retain MMA’s workforce, leveraging and expanding its expertise, assets, and operating model to further increase its footprint in the offshore wind support services market globally and in Asia. The company will continue to pursue further growth opportunities through mergers and acquisitions and organic expansion.
MMA’s fleet of 20 offshore vessels and operations in Asia Pacific will now benefit from Cyan’s knowledge of the offshore wind sector as well as installation and operations and maintenance (O&M) expertise.
The deal comes at a time when the global demand for vessels in the offshore wind sector is expected to outpace supply significantly, particularly as the average turbine size has increased, with some projects now planning to install turbines as large as 15MW.
“With Cyan’s acquisition of Sentinel in the UK and now MMA in Australia, we are rapidly establishing world-class leaders in new, fast-growing sectors,” said James Chern, managing partner and CIO of Seraya Partners – Cyan’s main investor. |
