Dyna-Mac Fires CEO and Executive Chairman Lim Ah Cheng
Immediate Termination of CEO and Executive Chairman
Offshore oil-and-gas contractor Dyna-Mac has fired its executive chairman and chief executive officer Lim Ah Cheng with immediate effect. The company made the announcement in a bourse filing on December 16.
Reason for Termination
The board of directors of Dyna-Mac decided to terminate Lim’s appointment as executive chairman and CEO in order to identify areas where the company’s strategic direction and operations can be improved. The decision was made after a review of the company’s business following the acquisition of Dyna-Mac by Hanwha Ocean SG.
Transition Plan
The daily running of Dyna-Mac’s business will continue to be overseen by its directors and management team. There are no unresolved differences in opinion on material matters between Lim and the board. However, the issue of paying Lim his remaining salary is currently under discussion and will be finalized in due course.
Background on Lim’s Tenure
Lim had been at the helm of Dyna-Mac for four years and had successfully brought the company back from the brink of bankruptcy. Under his leadership, the company’s financial performance improved significantly, with the group registering a net profit of S$38.8 million in the first half of its 2024 fiscal year, compared to a net loss of S$14.2 million in the same period in 2020.
Company’s Current Status
As of June 2024, Dyna-Mac’s order book stood at S$681.3 million, with deliveries scheduled until the end of its 2026 fiscal year. The company’s net cash position was S$307.7 million, with zero bank borrowings.
Delisting of Dyna-Mac
The company will soon be delisted from the stock exchange after Hanwha Ocean SG completed the acquisition of all outstanding shares not acquired under the offer on November 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, which was later raised to S$0.67 per share.
Frequently Asked Questions
Q: Why was Lim Ah Cheng fired as CEO and executive chairman of Dyna-Mac?
A: He was fired to identify areas where the company’s strategic direction and operations can be improved.
Q: Who will oversee the daily running of Dyna-Mac’s business?
A: The company’s directors and management team will continue to oversee the business.
Q: What is the current status of Lim’s remaining salary?
A: The issue is currently under discussion and will be finalized in due course.
Q: What is the current financial status of Dyna-Mac?
A: The company’s order book stands at S$681.3 million, with deliveries scheduled until the end of its 2026 fiscal year. Its net cash position is S$307.7 million, with zero bank borrowings.
