OFFSHORE oil-and-gas contractor Dyna-Mac has fired its executive chairman and chief executive officer Lim Ah Cheng.
It said in a bourse filing late on Monday (Dec 16) that Lim had been fired with immediate effect, following a review of its business after Hanwha Ocean SG completed the acquisition of the company.
As the board of directors wanted to identify areas where the strategic direction and operations of Dyna-Mac can be improved, it made the decision to terminate Lim as executive chairman of the board and as CEO.
The daily running of Dyna-Mac’s business will continue to be overseen by its directors and management team.
While there are no unresolved differences in opinion on material matters between Lim and the board, there is still the issue of paying Lim his remaining salary – a matter that is currently under discussion and will be finalised in due course, noted the filing.
Lim’s sudden termination comes after four years at the helm of Dyna-Mac. He had managed to bring the beleaguered offshore oil-and-gas contractor back from the brink of bankruptcy.
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In the first half of its 2020 fiscal year, the group had registered a net loss of S$14.2 million, on revenue of S$51.4 million, just months after Lim became CEO.
For H1 FY2024, Dyna-Mac’s earnings more than trebled to S$38.8 million, from S$10.1 million in the corresponding period the year before, as revenue climbed 42.5 per cent to S$259.7 million.
Its order book grew to S$681.3 million as at June 2024, with deliveries scheduled until the end of FY2026. Meanwhile, the group’s net cash position stood at S$307.7 million, with zero bank borrowings.
The company will soon be delisted after Hanwha Ocean SG – a special-purpose vehicle owned by South Korean public companies Hanwha Aerospace and Hanwha Ocean – made a compulsory acquisition of all the offer shares not acquired under the offer on Nov 20.
Hanwha had launched a voluntary conditional cash offer in September to take management control of Dyna-Mac at an offer price of S$0.60 per share.
This was raised in October to a final offer price of S$0.67 apiece, which a substantial and founding shareholder accepted.
The offer turned unconditional on Nov 5, before the Competition and Consumer Commission of Singapore cleared Hanwha Ocean SG’s proposed acquisition of Dyna-Mac on Nov 15.
