With the acquisition, Singapore-based Cyan Renewables set to become the Largest APAC Platform for Offshore Wind Energy Services.
Cyan Renewables (“Cyan”), Asia’s leading offshore wind services platform based in Singapore, today announced its acquisition of Australian offshore marine services provider MMA Offshore (“MMA”) (ASX:MRM) for A$1.1B (US$702M)*.
This transaction marks the region’s largest take-private deal in the offshore wind energy services industry, strengthening Cyan's position in the Asia Pacific (APAC) region and underscoring the sector's crucial role in achieving net zero goals.
MMA shareholders will receive A$2.70 (US$1.78) per share in cash, representing a 36% premium over the 90-day volume-weighted average share price, and EV/EBITDA ratio stands at 6.2x.
James Chern, Managing Partner and CIO of Seraya Partners, Cyan’s main investor, notes, “The new deal is transformative and reflects our ability to build and create platforms from scratch, spanning from Asia to Europe. With Cyan's acquisition of Sentinel in the UK and now MMA in Australia, we are rapidly establishing world-class leaders in new, fast-growing sectors.”
The acquisition was supported by a group of co-investors, including the Alberta Investment Management Corporation (“AIMCo”). AIMCo, which opened its office in Singapore in September 2023, participated in the MMA acquisition through its investment in Cyan.
Ben Hawkins, AIMCo’s Executive Managing Director, Global Head of Infrastructure, Renewable Resources and Energy Transition, said, “AIMCo is pleased to expand our partnership with Seraya to collaborate on this exciting opportunity to build next-generation infrastructure in Asia. As a clear market leader, Cyan is strategically positioned to benefit from the growing offshore wind and marine protection sectors, and this acquisition positions it as an important catalyst in the ‘blue-to-green’ transition of this space.”
Lee Keng Lin, CEO of Cyan Renewables, said, “The acquisition of MMA is a significant milestone for our future as a leader in the renewable energy space. This move strengthens our position in the Asia-Pacific region and solidifies our leadership in the offshore wind industry and energy transition. This acquisition brings extensive maritime services expertise and a strong operational presence in key markets such as Australia and the broader APAC region.”
Cyan plans to retain MMA’s workforce, leveraging and expanding its expertise, assets, and operating model to further penetrate the offshore wind support services market globally and in Asia. In addition to supporting existing clients in the offshore energy and broader maritime industries with its marine and subsea services, Cyan will actively pursue growth opportunities through mergers and acquisitions and organic expansion.
MMA’s leadership in Australia, highlighted by its fleet of 20 offshore vessels and deep operations in Asia Pacific, will strengthen Cyan's regional presence. In addition to MMA leveraging Cyan as a capital partner, MMA will benefit from Cyan’s extensive knowledge in offshore wind farms, such as installation and operations and maintenance (O&M) expertise and proven track record in Europe, to improve service offerings and operational efficiencies.
David Ross, Managing Director of MMA said, “We are excited to be part of the Cyan Group to accelerate progress in achieving net zero goals in the maritime industry. Cyan’s expertise in offshore wind farms and investment capability, combined with our best-in-class maritime and offshore solutions, will foster innovation and operational excellence, accelerating the energy transition.”
The deal comes amid increasing demand to adopt renewable and clean energy. According to the International Energy Agency (IEA), global clean energy capacity must triple by 2030 to meet net zero emissions by 2050. The wind farm market is projected to grow at a CAGR of 21.4% from 2024 to 2034. At the same time, the global demand for vessels in the offshore wind sector is expected to outpace supply significantly, particularly as the average turbine size has increased, with some projects now planning to install turbines as large as 15MW.
*based on the exchange rate of USD$1 = A$1.5162 on the last full trading day on Wednesday 25 July 2024.