Lim was appointed Dyna-Mac’s chairman and CEO in March 2020. Under his leadership, the company turned around from losses in FY2020 to sustained profitability thereafter.

Hanwha Ocean SG has given Dyna-Mac’s chairman of the board and CEO Lim Ah Cheng notice of termination after a review of Dyna-Mac's business.

The termination, which takes effect on Dec 16, comes after the close of Hanwha’s voluntary conditional cash offer. 

According to the filing on the Singapore Exchange S68 (SGX) on the evening of Dec 16, the day-to-day management and operations of Dyna-Mac will continue to be overseen by the company’s directors and management team.

There are also “no unresolved differences in opinion on material matters” between Lim and the board including matters which would materially impact Dyna-Mac or its financial reporting. The amount of payments due to Lim on his termination is “under discussion” and will be finalised in due course.

Lim was appointed as Dyna-Mac’s chairman and CEO in March 2020, after the company’s founder, executive chairman and then-CEO Desmond Lim, passed away unexpectedly in October 2019

At the time, the firm’s balance sheet was $24 million in the red in the FY2019 ended Dec 31, 2019. In FY2020, during the Covid-19 pandemic, Dyna-Mac’s losses deepened to $58.4 million.

After CEO Lim took over, he managed to engineer a turnaround, which resulted in Dyna-Mac making a profit of $5.6 million in FY2021.

Fast forward to 1HFY2024, Dyna-Mac’s net profit surged more than 200% to $38.7 million thanks to the completion of major projects, improved productivity and higher projects undertaken. Analysts were upbeat on Dyna-Mac’s outlook after its better-than-expected results.

On Sept 11, Korean conglomerate Hanwha announced that it was making a tender offer of 60 cents per share for the shares it did not own in Dyna-Mac. Hanwha bought Keppel’s 23.91% stake in Dyna-Mac in a married deal for $100 million in May.

On Oct 14, Hanwha increased its offer price to 67 cents. The offer closed on Nov 20 after the Competition and Consumer Commission of Singapore (CCCS) cleared the proposed acquisition, turning Hanwha’s offer “unconditional in all respects”.

On Nov 20, Hanwha said it planned to exercise its right of compulsory acquisition for the remaining shares in Dyna-Mac it does not yet own. After the exercise, the group said it intends to delist the Mainboard-listed company.

Shares in Dyna-Mac were suspended on Nov 21. Shares in the company last traded at 66.5 cents as at the same day, up 129% year to date.

The company stood out among its peers in The Edge Singapore’s Centurion Club this year, which ranks listed companies with market capitalisations between $100 million and $999 million. The company scored the highest returns to shareholders over three years within the applied resources + chemicals + energy – fossil fuels + mineral resources + renewable energy + utilities sector. 

See also:

• Hanwha Group makes tender offer of 60 cents per share for Dyna-Mac (update)
• ZICO Capital appointed as IFA for Dyna-Mac's offer
• Estate of Dyna-Mac’s founding shareholder does not find Hanwha’s cash offer compelling
• Hanwha Group explains rationale behind Dyna-Mac’s offer price
• Standoff as Hanwha keeps 60 cents offer price for Dyna-Mac in offer document
• Estate of Dyna-Mac’s founding shareholder issues follow-up statement after offer document
• Hanwha Group announces ‘final offer’ of 67 cents for Dyna-Mac (update)
• Dyna-Mac’s IFA deems offer to be ‘fair and reasonable’
• Estate of Dyna-Mac’s founding shareholder to accept Hanwha’s offer
• Hanwha Group's offer for Dyna-Mac turns unconditional with acceptances; offer to remain open till Nov 20
• CCCS clears proposed acquisition of Dyna-Mac by Hanwha Ocean
• Hanwha to exercise compulsory acquisition rights after stake in Dyna-Mac crosses 90%