Singapore-based offshore wind vessel specialist Cyan Renewables has submitted a proposal to acquire 100% of the shares of Perth-based offshore wind operator MMA Offshore.
Cyan, a subsidiary of Cyan Renewables, First offer The company plans to acquire the Australian company's shares in March for A$2.60 (US$1.73) a share. The proposed acquisition would value MMA's shares at about A$1.03 billion (US$687 million) on a fully diluted basis.
On Thursday, Cyan sent an enhanced offer of A$0.10 per share, or A$2.70 (US$1.80) per share in cash. The improved offer values MMA's shares at about A$1.07 billion (US$713.7 million) on a fully diluted basis.
According to the proposal, this represents a 15% premium to the ASX market closing price of A$2.35 per MMA share on 22 March 2024, the last trading day before the initial offer was announced. This improved proposal will be Cyan's best and final offer if no competing proposal is submitted.
As with the previous proposal, MMA's directors have unanimously recommended that shareholders vote in favor of the proposal, subject to the absence of a superior proposal and the independent experts continuing to conclude that the proposal is in the best interests of MMA's shareholders.
Major shareholder TIGA Trading and its affiliates have informed MMA that they intend to vote in favour of the improved proposal.
To proceed with the proposed acquisition, approval of at least 75% of the total votes cast by MMA's shareholders is required, and, unless waived by a court, approval of a majority of all MMA's shareholders present at the meeting and voting in person or by proxy is also required.
Following the initial acquisition offer, the company's board of directors said its rationale for supporting the acquisition offer was based on the fact that the price per share included a premium to the recent trading price of MMA's shares and that the sale of the shares would eliminate the risks associated with operating in a cyclical industry.
