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2021-08-31

$SEMBCORP MARINE LTD(S51.SI)$ The Potential Combination

As SembMarine and Keppel have announced, discussions about their Potential Combination are at a very preliminary stage. If there is a definitive agreement on this, shareholders of both companies will then be asked to consider and vote on it separately.

As outlined by Keppel and SembMarine on their discussions, it is the Combined Entity that would pay the consideration of up to S$500m to Keppel from the combined asset base of Keppel O&M and SembMarine, not just SembMarine’s, should the Potential Combination be approved. It is not correct to say that the proposed 2021 Rights Issue is to provide those funds to pay Keppel.

In short, the upcoming 2021 Rights Issue and Potential Combination are independent transactions, which will be separately and independently subject to shareholder votes. It is improper to suggest that these are part of a corporate exercise to benefit Temasek at the expense of minority shareholders of SembMarine. 

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