Marine and subsea services provider MMA Offshore Limited (MMA) has entered into a binding Scheme Implementation Deed with Cyan MMA Holdings Pty Limited (Cyan) for Cyan’s proposed acquisition of 100% of the shares in MMA via a scheme of arrangement between MMA and its shareholders.

Cyan is a subsidiary of Cyan Renewables, which is an offshore vessel portfolio company of Seraya Partners, an infrastructure fund focused on energy transition and digital infrastructure.

If the scheme is implemented, each MMA shareholder on the scheme record date will receive a cash amount of A$2.60 per MMA share.

As it is reported by MMA Offshore, “Cyan intends to retain MMA’s workforce and to utilise and grow MMA’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.”

Ian Macliver, MMA chairman, 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 5 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 Scheme Implementation Deed.

“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,” Macliver concluded.

MMA will engage an independent expert to prepare a report to opine on whether the Scheme is in the best interests of MMA shareholders, whilst the Scheme is subject to various customary conditions precedent.

Source: MMA Offshore. The full news can be found here. These news are for information purposes only and do not constitute or replace professional advice. Pls see our disclaimer here.