In the offer document dated Oct 2, Hanwha Group has kept its offer price of 60 cents for Dyna-Mac&rsquo s shares, although it has not said this is the final offer. However, as of Oct 2, no third party has announced an offer for Dyna-Mac. The offer currently represents the only offer available for acceptance by shareholders. 

 

Hanwha has said it intends to keep Dyna-Mac listed. According to the independent financial advisor' s (IFA) letter for the non-privatisation mandatory general offer for Datapulse Technology BKW , the average premiums / (discount) to the one-, three-, six- and 12-month volume weighted average prices (VWAPs) for all non-privatisation offers on the Singapore Exchange S68 (SGX) from 2020 to 2023 across 17 deals, are (1.5)%, (1.5)%, (0.1)% and 8.9% respectively. As such, Hanwha&rsquo s offer price, in this case, represents a 6.2%, 14.1%, 29.3% and 50% premium over the one-, three-, six- and 12-month VWAP, respectively. 

 

Currently, analysts from Maybank Securities, OCBC Investment Research (OIR) and Lim & Tan Securities have recommended investors &ldquo wait&rdquo for the final offer. At the same time, they have maintained their &ldquo buy&rdquo call on the company. The Edge Singapore' s own analyst has said Dyna-Mac' s intrinsic value is 61 cents.  

 

Of note is that last month, Hanwha dropped its bid for Australian Securities Exchange (ASX)-listed Austal. On Sept 25, in a letter, Hanwha CEO Hyek Woong Kwon cited Austal' s unexpected demands and lack of cooperation as key reasons for terminating discussions, Australian media reported. 

 

Currently, Hanwha has irrevocable undertakings for 24.31% of Dyna-Mac. That leaves 25.69% of Dyna-Mac it does not own, to get to the 50% threshold, failing which shareholders who have accepted the offer will have their shares returned.    

 

Hanwha Group says it intends to work with the company to &ldquo extend the reach of digital transformation into yards, bringing to life smart yards, while delivering low and zero-carbon solutions that can power the energy transition&rdquo , subject to the success of the offer. 

 

Additionally, Hanwha&rsquo s offer comes on the back of its consideration of macroeconomic uncertainties. In the face of existing volatility risks, Hanwha adds that it believes &ldquo in the need for a patient and sustainable approach to the company&rsquo s growth by targeting market opportunities in energy transition more broadly&rdquo . 

 

If successful, Hanwha&rsquo s acquisition will enable the company to advance new technologies and investments in the Singapore energy market, the offer document says.  

 

The offer closes at 5.30pm on Oct 30.