SYDNEY, AUSTRALIA: In a significant move within the maritime industry, MMA Offshore Limited (MMA) has announced a binding agreement for a takeover by Cyan MMA Holdings Pty Limited, a subsidiary of Cyan Renewables.

The deal, valued at A$2.60 per share, will result in an all-cash acquisition scheme that values MMA’s fully diluted equity at approximately A$1.03 billion.

The proposed acquisition represents a substantial premium over MMA’s recent share prices, including an 11% increase over the closing price on March 22, 2024, and a 91% premium over the company’s net tangible assets as of the end of 2023.

This move is seen as a strategic expansion for Cyan into offshore wind support services, leveraging MMA’s existing marine and subsea services expertise.

MMA’s Board has unanimously recommended that shareholders approve the scheme, which is expected to be voted on in a meeting scheduled between late June and mid-July 2024.

The directors of MMA have also expressed their intention to vote in favor of the acquisition, highlighting the benefits it presents for the shareholders and the company’s future.

This acquisition marks a pivotal moment for MMA as it joins forces with Cyan MMA Holdings, promising growth and continued service excellence in the offshore energy sector.

Commenting on the Scheme, 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 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.”