Dyna-Mac - OCBC Investment 2024-09-12: A Phoenix Risen From The Ashes Warrants A Greater Glow

• Hanwha Aerospace and Hanwha Ocean (Hanwha) announced tender offer for Dyna-Mac (SGX:NO4)’s shares at S$0.60 apiece, valuing the company at a 21.2% premium as at 10 Sep 2024.

Hanwha launched a voluntary conditional cash offer for Dyna-Mac’s shares at S$0.60 apiece

• - Read this at SGinvestors.io -
• Hanwha has not made an offer for the 137.7m warrants outstanding, which are exercisable into 137.7m new shares at an exercise price of S$0.15 up till 22 Oct 2024. That being said, Hanwha will recognise and pay for all new shares issued pursuant to the exercise of the warrants prior to the close of the offer.
• - Read this at SGinvestors.io -

Intention is to secure management control

• Hanwha’s intention is to secure management control, and the tender offer is subject to a minimum acceptance condition of more than 50% of shares in Dyna-Mac. This includes the 25.4% stake that Hanwha currently already owns (21.7% and 3.7% through Hanwha Ocean and Hanwha Aerospace, respectively), which implies that Hanwha will need to secure at least another 24.6% of shares.
• However, in the event that Hanwha secures more than 90% of Dyna-Mac’s shares at offer close, thereby causing the company to lose its free float status, Hanwha intends to exercise its right to compulsorily acquire all remaining shares and to delist Dyna-Mac from the Singapore Exchange (SGX).

Acquisition comes amidst Hanwha’s active pursuit of inorganic growth

• Read more at SGinvestors.io.

Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-09-12 SGinvestors.io

---