Dyna-Mac Holdings and Keppel Offshore & Marine have entered into a memorandum of understanding (MOU) on September 11.

The MOU was signed by Keppel O&M’s wholly-owned subsidiary Keppel Shipyard.

Under the terms of the MOU, the collaboration agreement entered into on July 15, 2010, by both parties was terminated and superseded by the MOU.

Dyna-Mac says the objective of the MOU is to explore potential business relationships and opportunities between both companies on a non-exclusive basis to mutually benefit each other and cooperate in each other’s core businesses in marine and offshore industry.

The MOU will be valid for five years and may be further renewed on mutual consent.

Keppel O&M is the holding company of KS Investments, which holds a 24.43% stake in Dyna-Mac.

Shares in Dyna-Mac closed 0.7 cent higher, or 7.9% up at 9.6 cents, while shares in Keppel Corp closed 11 cents higher, or 2.7% up, at $4.25 on September 16.