Hanwha Group, a South Korean conglomerate, increased its offer on Monday for the remaining share it doesn't already own in Singapore-based Dyna-Mac. The offshore oil and natural gas contractor is valued at S$790.6m ($605.41m).

Hanwha had previously offered S$0.60 for each share. The new offer is 35.4% higher than Dyna-Mac’s last traded price of S$0.67 on September 10, just before Hanwha’s offer was made public.

LSEG data shows that shares of Dyna-Mac closed last week at S$0.65, up 94% for the year.

Hanwha stated in a press release that the "improved offer" is "final", and "has no intention" to increase it or revise it.

The latest offer comes after a statement from Dyna-Mac’s largest shareholder on October 10, the estate of founder Desmond Lim. It said that Hanwha’s S$0.60 bid was not "compelling", as it didn't adequately reflect the value and growth potential of the company.

LSEG data shows that Lim's estate owns a 28.36% share in Dyna-Mac while Hanhwa units Hanhwa Aerospace, and Hanwha Ocean hold a combined 24% stake.

Hanwha stated on Monday that its latest final offer price reflected the intrinsic value of the acquisition and that it may "consider other strategic options" if the offer fails at this point.

Hanwha

Talks halted

Austal announced its intention to buy the Australian shipbuilder five months earlier.

rejected

A$1.02 Billion ($686.36 M) in takeover offers because the sensitive nature of the company's operations would make it unlikely that Australian and U.S. regulators would approve.

Hanwha will gain access to Dyna-Mac's oil and gas production facilities in Singapore, as well as its floating storage and offloading vessel fleet.

Hanwha said that it considered the Singaporean company's financial performance, as well as potential benefits from its recent Exterran Offshore purchase to determine its offer price. (1 Singapore dollar = 1.3059 Australian dollars; 1 Australian dollar = 1.4861) (Reporting and editing by Mrigank Mukherjee and Yantoultra Ngui, both in Bengaluru. Editing and reporting by Mrigank Mukherjee, Eileen Soreng, and Christian Schmollinger).

(source: Reuters)