Singapore-based Cyan Renewables to acquire vessel operator MMA Offshore

MMA Offshore has entered into a binding scheme implementation deed (SID) with Cyan MMA Holdings Pty Ltd ACN 675 840 196 for Cyan’s proposed acquisition of 100% of the shares in MMA Offshore. Cyan MMA Holdings Pty Ltd ACN 675 840 196 is a subsidiary of Cyan Renewables, the offshore vessel portfolio company of infrastructure investor Seraya Partners.

If the scheme is implemented, each MMA shareholder will receive a cash amount of A$2.60 (US$1.70) per MMA share. The scheme consideration values MMA equity on a fully diluted basis at approximately A$1.03Bn.

Cyan intends to retain MMA Offshore’s workforce and to utilise and grow the company’s expertise, assets and operating model to expand further into offshore wind support services while continuing to provide a comprehensive suite of marine and subsea services to its existing clients in the offshore energy and wider maritime industries.

The MMA board has unanimously recommended that MMA shareholders vote in favour of the scheme, in the absence of a superior proposal.

MMA chairman Ian Macliver said, “There has been increased interest in MMA as our strategy to diversify our operations and deleverage the business, together with our improved earnings, has seen the share price rise more than 80% over the past five months. We have been in discussions with Cyan since October 2023 and the board has now reached the required level of confidence to enter into the SID.

“We believe Cyan’s offer provides compelling value for MMA today, representing a 31% premium to the 90-day volume weighted average share price, a 91% premium to the company’s net tangible asset value and a 7.7x earnings multiple based on annualised first half FY24 EBITDA. 

“The MMA Board believes that the scheme is in the best interests of shareholders, providing certainty in the form of a cash payment to shareholders while removing the risks associated with operating in a cyclical industry.

“Cyan intends to retain MMA’s workforce, clients, sites and contracts and to invest capital in growing the business. MMA provides Cyan with exposure to Asia and, importantly, Australia as Cyan pursues equity investment to create a leading global energy transition-focused offshore marine business.”

MMA shareholders will have an opportunity to vote on the scheme at the meeting, which is anticipated to be held in late June to mid-July 2024.