Seraya considers selling or listing offshore wind company Cyan, CIO reports
Seraya Partners, a Singapore-based investment firm, is considering a dual track process for Cyan Renewables, its offshore wind services company. This could lead to a sale of the company or an IPO.
According to a person with knowledge of the situation, Cyan, a Singapore-based marine service company that focuses on renewables, may be worth as much as $2 billion.
Infrastructure-focused private equity firm Seraya Partners is assessing strategic options for Cyan after receiving several offers to acquire the company, said James Chern, managing partner and chief investment officer, as strong demand for vessels and a limited global supply push up valuations ?across the sector.
He said: "Because of our position as the largest player in this global market, we get inbound offers." "Last years we had some inbounds and this year, a few more."
Chern stated that Seraya is not under any pressure to sell but will act in its investor's best interest if the price and terms are attractive. He declined to reveal the name of the adviser because the deal is private. Seraya stated that Cyan was founded in 2004 and is the largest marine energy vessel operator in the world.
STRONG DEMAND - STRATEGIC OPTIONS ARE IN PLAY
Cyan has a fleet consisting of 35 vessels. Its main activities are maintenance and repair of offshore wind turbines. These include Southeast Asia, Taiwan, Perth, Australia and Aberdeen, Scotland.
Seraya refused to comment on Cyan’s target valuation, but stated that the company's earnings were over $100 million before taxes, interest, depreciation and amortisation.
Chern stated that Cyan has a strong business model and we are interested in it. We also like the fact that there is a structural shortage of vessels, which will benefit from a rising demand for vessels to service offshore renewables projects as well as conventional energy projects. Chern said, "We don't mind holding it for the long-term." We could exit the business if it becomes a good idea in the future.
Bloomberg News reported earlier that Seraya considered a sale of Cyan. It did not name the sources.
In 2024, MMA Offshore (Australian peer) was acquired by?Cyan for A$1.1billion ($790m), making it the largest take-private transaction in this area in the Asia-Pacific - region.
According to the International Energy Agency, offshore wind capacity will?expand? by 140 gigawatts from 2025 to 2030. This is more than twice the growth experienced in the previous five years. China will account for almost half of the growth.
(source: Reuters)
