Cyan Renewables to buy Australian ship operator MMA Offshore for A$1.1 billion

Authors: Yantoultra Ngui and Roushni Nair

SINGAPORE, July 25 (Reuters) – Singaporean wind farm operator Cyan Renewables said on Thursday it would buy Australian peer MMA Offshore for A$1.1 billion ($725.67 million), the largest takeover deal in the sector in the Asia-Pacific region.

According to a joint statement by Cyan and MMA, MMA shareholders will receive AUD 2.70 per share in cash, representing a 36% premium over the 90-day average share price.

Cyan, backed by infrastructure investor Seraya Partners, initially offered A$2.60 per share for MMA in March but raised the price last month.

MMA shares are up almost 44% since the beginning of the year, giving them a market capitalization of $702 million, according to LSEG data.

Renewable energy companies and assets are becoming increasingly attractive as investors seek to benefit from growth in the sector, driven by the global shift to a net-zero emissions economy.

According to the International Energy Agency, the global wind farm market is forecast to grow at an average annual rate of 21.4% until 2034.

Cyan, an owner, operator and lessor of vessels across the offshore wind value chain, plans to retain MMA’s staff and leverage its operating model to further penetrate the global offshore wind support services market.

Based in Perth, Australia, the MMA website says the company operates 20 vessels and employs more than 1,100 staff in offices in Singapore, Taiwan, Malaysia, Dubai and the United Kingdom.

“This step strengthens our position in the Asia-Pacific region and confirms our leadership in offshore wind and energy transformation,” said Lee Keng Lin, CEO of Cyan Renewables.

According to the statement, the agreement translates into an EV/EBITDA ratio (a financial indicator used to assess the value and performance of a company) of 6.2.

The deal was backed by a group of co-investors, one of which was Canadian investment manager AIMCo, which also invested in Cyan, the statement said.

Cyan added that it plans to “actively pursue” growth opportunities through mergers and acquisitions as well as organic expansion.

In January, the company agreed to acquire a 75% stake in U.K.-based Sentinel Marine, an operator of environmental response vessels, according to a press release at the time, which did not disclose financial details. ($1 = 1.5158 Australian dollars)

(Reporting by Yantoultra Ngui in Singapore and Roushni Nair in Bengaluru; Editing by Janane Venkatraman)