Jul 24, 2024

Singapore-based Cyan Renewables Acquires Australian Vessel Operator MMA Offshore, Becoming the Largest APAC Platform for Offshore Wind Energy Services Globally

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Singapore and Perth, Australia - 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 US$714M (A$1.1B). 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 US$1.81 per share in cash, representing a 31% premium over the 90-day volume-weighted average share price, and EV/EBITDA ratio stands at 6.2x. MMA’s projected EBITDA is $146 - 149M for FY2024, a more than 110% increase over the previous year’s $69.3M, highlighting MMA’s strong performance and reflecting sustained growth and operational efficiency.

James Chern, Managing Partner and CIO of Seraya Partners, said, “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.

About Cyan Renewables

Headquartered in Singapore and majority owned by Seraya Partners, Cyan Renewables is Asia's first dedicated offshore wind vessel operator supporting the fast-growing offshore wind farm industry and the marine sector’s transition from “blue to green”. Built on the strong foundation of a team led by industry veterans, Cyan Renewables aspires to accelerate the growth of the global offshore wind sector by investing in a dedicated fleet of wind farm support vessels to support the full lifecycle of offshore wind farms from installation to servicing and maintenance. By being the partner of choice to both wind farm developers and vessel operators, Cyan Renewables aims to facilitate the world’s transition towards a greener future built on sustainable renewable energy. For more information, please visit cyanrenewables.com

About MMA Offshore

MMA Offshore is a leading provider of marine and subsea services globally. With its fleet of modern offshore vessels and our marine, subsea and project logistics expertise, MMA delivers pioneering blue solutions to support energy and offshore renewables projects, governments and coastal infrastructure around the world.Whether delivered as a singular solution, or an end-to-end integrated project – MMA partners closely with our clients to provide innovative, fit for purpose solutions to solve the most demanding marine challenges. Headquartered in Perth, Western Australia, MMA has a global presence, with offices in Singapore, Taiwan, Malaysia, Dubai and the United Kingdom. For more information, please visit mmaoffshore.com

About Seraya Partners

Seraya Partners is the first Asia-based independent private equity fund for next-generation infrastructure investing, headquartered in Singapore. Seraya Partners targets control-oriented, middle-market platform investments in next-generation infrastructure focusing on the digital infrastructure and energy transition sectors, primarily within the developed Asia-Pacific region and Southeast Asia. Seraya has offices in Singapore, Kuala Lumpur, Seoul, Tokyo, and Denmark. For more information, please visit serayapartners.com

About Alberta Investment Management Corporation (AIMCo)

AIMCo is one of Canada’s largest and most diversified institutional investment managers with more than C$160.6 billion of assets under management as at December 31, 2023. AIMCo invests globally on behalf of pension, endowment, insurance, and government funds in the Province of Alberta. With offices in Edmonton, Calgary, Toronto, London, Luxembourg, New York, and Singapore, our more than 200 investment professionals bring deep expertise in a range of sectors, geographies, and industries.