MMA chairman Ian McLiver said the companies had been in discussions since October 2023 and shareholders would benefit from the cash payment while “removing the risks associated with operating in a cyclical industry”.
“Cyan intends to retain MMA's employees, customers, locations and contracts, and invest capital in growing the business,” McRiver said.
“The MMA provides Cian with exposure to Asia and, importantly, Australia, with Cyan looking to pursue an equity investment to create a world-leading energy transition focused marine offshore business. There is.”
Mr. McRiver said that Cyan's proposal is a “persuasive'' one, as it adds a 31% premium to the company's 90-day volume-weighted average share price, and the annualized profit for the first half of fiscal 2024 is 7.7 times. “It has some value,” he said.
But Mr Edgeley insisted the bid represented a multiple of just five times next year's expected revenue.
MMA stock, which has more than doubled in the past year, soared 10.6% to close at $2.60 on Monday.
The deal will see Cyan, headquartered in Singapore and owned by Celaya Partners, match a higher competing offer received by MMA and pay a $10.2 million penalty.
A meeting to vote on the scheme is expected to be held from late June to mid-July, and the deal will need approval from Australia's Foreign Investment Review Board.
For the acquisition agreement to be successful, at least 75 percent of the votes cast at the meeting must be in favor of the acquisition agreement.
In its half-year results, MMA said market conditions were “favorable” due to strong demand for its offshore vessels and services, and limited competition from new shipbuilding was expected over the next two to three years.
The report said the offshore wind sector is experiencing “unprecedented growth” and investment in new oil and gas projects continues.
MMA's net income fell 23% to $62.4 million in the six months ended Dec. 31, but the company did not declare a dividend.
However, the group's profit before interest, tax, depreciation and amortization almost doubled to $63 million. MMA has recently diversified from Australia to Asia and Europe.
