Cyan Renewables, Asia’s main offshore wind companies operator primarily based in Singapore, in the present day introduced its acquisition of Australian offshore marine companies supplier MMA Offshore (ASX:MRM) for USD 702 million.
The transaction marks the Asia Pacific (APAC) area’s largest take-private deal within the offshore wind vitality companies business, strengthening Cyan’s place within the area and underscoring the sector’s essential function in attaining internet zero objectives.
MMA shareholders will obtain USD 1.78 per share in money, representing a 36% premium over the 90-day volume-weighted common share value, with an EV/EBITDA ratio of 6.2x.
“The brand new deal is transformative and displays our skill to construct and create platforms from scratch, spanning from Asia to Europe. With Cyan’s acquisition of Sentinel within the UK and now MMA in Australia, we’re quickly establishing world-class leaders in new, fast-growing sectors,” mentioned James Chern, Managing Associate and CIO of Seraya Companions, Cyan’s principal investor.
The acquisition was supported by co-investors, together with the Alberta Funding Administration Company (AIMCo), which participated by way of its funding in Cyan. AIMCo opened its Singapore workplace in September 2023.
“As a transparent market chief, Cyan is strategically positioned to learn from the rising offshore wind and marine safety sectors, and this acquisition positions it as an necessary catalyst within the ‘blue-to-green’ transition of this area,” mentioned Ben Hawkins, AIMCo’s Government Managing Director, World Head of Infrastructure, Renewable Assets and Vitality Transition.
Lee Keng Lin, CEO of Cyan Renewables, mentioned that the acquisition of MMA enhances their management within the renewable vitality sector, significantly within the offshore wind business and vitality transition, by increasing their experience and presence in key markets like Australia and the Asia-Pacific area. “The acquisition of MMA is a major milestone for our future as a frontrunner within the renewable vitality area,” he mentioned.
Cyan plans to retain MMA’s workforce and develop its experience to penetrate the worldwide and Asian offshore wind assist companies market. The corporate will assist present purchasers in offshore vitality and maritime industries whereas pursuing development by way of mergers, acquisitions, and natural enlargement.
MMA’s management in Australia, with its fleet of 20 offshore vessels, will improve Cyan’s presence within the Asia Pacific area. MMA will leverage Cyan as a capital companion and profit from Cyan’s offshore wind farm experience in set up, operations, and upkeep to enhance service choices and operational efficiencies.
David Ross, Managing Director of MMA, mentioned, “We’re excited to be a part of the Cyan Group to speed up progress in attaining internet zero objectives within the maritime business. Cyan’s experience in offshore wind farms and funding functionality, mixed with our best-in-class maritime and offshore options, will foster innovation and operational excellence, accelerating the vitality transition.”
The deal comes amid rising demand to undertake renewable and clear vitality. The rising demand for renewable vitality is driving development within the wind farm market, projected to develop at a CAGR of 21.4% from 2024 to 2034. The worldwide demand for vessels within the offshore wind sector is anticipated to outpace provide, particularly with the rise in common turbine dimension, some reaching as much as 15MW.
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