Dyna-Mac

[cyclone]

Dyna-Mac Secures Fabrication Contracts For $150 Million From Long-Standing Customers

Dyna-Mac Holdings Ltd announced that the Group has secured several fabrication contracts totalling approximately $150 million from its long-standing customers.

Completion of these fabrication contracts are scheduled to spread over 2 years, and as such, the Group expects to derive revenue streams from these orders mainly from 3Q2019 up to FY2020.

Barring deferral or rescheduling by customers or other unforeseen circumstances, the above orders are expected to have a positive impact on Dyna-Mac’s earnings per share and net tangible assets for the current financial year ending 31 December 2019.

[weijian]

To recap, Hanwha bought its existing ~25% stake from Keppel Holdings just a few months ago at ~35cents/share. On hindsight, the Koreans wanted control.

Hanwha launches voluntary conditional cash offer for Dyna-Mac at S$0.60 a share

The offer price represents a premium of 21.2 per cent over Dyna-Mac’s last traded price of S$0.495.

It also represents premiums of 6.2 per cent, 14.1 per cent, 29.3 per cent and 50 per cent over the volume-weighted average price for the one-month, three-month, six-month and 12-month periods, respectively – up to and including Sep 10, when the counter was last traded.

Hanwha said that it does not have any intention presently to actively pursue the delisting of Dyna-Mac from the mainboard.

However, if the free-float requirement is not satisfied at the close of the offer and trading is suspended, Hanwha said that it does not intend to undertake or support any action to lift the trading suspension.

Hanwha, the offeror, plans to exercise its right to compulsorily acquire all the offer shares not acquired under the offer if it receives valid acceptances in respect of not less than 90 per cent of the total number of issued shares.

https://www.businesstimes.com.sg/compani...0-60-share

[weijian]

The merger arbitragers are pretty daring to be selling insurance for pretty low premiums.

I have no idea of Dyna-Mac's intrinsic value but did the Keppel Capital allocators made a mistake selling their 25% stake at 35cents few months ago? Does this reflects the capability of these allocators at Keppel Capital OR is this hindsight bias at work?

The MayBank sell-side analysts opine that "60cents is a fair price but on the lower end". In June2024, its TP was still 52cents before it was lifted to 62cents 1 month later. So I reckon beauty is always in the eye of the beholder. Without a prince, Cinderella is probably not a fairy tale!

Brokers’ take: Dyna-Mac shareholders should wait for better offer, analysts say

South Korean company Hanwha on Wednesday (Sep 11) launched the offer to take management control of Dyna-Mac at S$0.60 a share.

In a report on Thursday, Maybank analyst Jarick Seet said the offer price, though fair, is on the lower end of the fair-value range.

Shares of Dyna-Mac : NO4 +0.81% were trading 0.8 per cent or S$0.005 higher at S$0.625 as at 1.28 pm on Friday.

https://www.businesstimes.com.sg/compani...alysts-say