Singapore’s Cyan Renewables, which operates vessels for offshore wind farms, said on Thursday it will buy its Australian peer MMA Offshore for A$1.1 billion ($725.67 million), marking the largest take-private deal in this space in the Asia Pacific region.
MMA shareholders will receive A$2.70 per share in cash, a 36% premium over its 90-day average price, according to a joint statement from Cyan and MMA.
Cyan, which is backed by infrastructure investor Seraya Partners, had initially offered A$2.60 per MMA share in March before sweetening the offer last month.
MMA’s shares have climbed almost 44% year-to-date, giving it a market capitalisation of $702 million, LSEG data showed.
Renewable companies and assets have become increasingly attractive as investors look to tap growth in the sector, driven by a global drive to transition to zero-emission economies.
The global wind farm market is projected to grow at a compound annual growth rate of 21.4% by 2034, according to the International Energy Agency.
Cyan, which owns, operates, and leases vessels across the offshore wind farm value chain, plans to retain MMA’s workforce and leverage its operating model for deeper penetration into the global offshore wind support services market.
MMA, headquartered in Perth, Australia, operates 20 vessels and has more than 1,100 employees in offices in Singapore, Taiwan, Malaysia, Dubai and Britain, according to its website.
“This move strengthens our position in the Asia-Pacific region and solidifies our leadership in the offshore wind industry and energy transition,” said Lee Keng Lin, Cyan Renewables’ CEO.
The deal translates to an EV/EBITDA ratio – a financial ratio used to evaluate a firm’s value and performance – of 6.2 times, the statement showed.
A group of co-investors supported the deal, with one of them, Canadian investment manager AIMCo, also participating through its investment in Cyan, the statement said.
Cyan added it plans to “actively pursue” growth opportunities through mergers and acquisitions as well as organic expansion.
In January, it agreed to acquire a 75% stake in UK-based Sentinel Marine, a maritime environmental response vessel operator, according to a press release at that time that did not disclose financial details.
Reuters