Sembmarine to raise S$2.1b, demerge from parent Sembcorp, Companies & Markets

Sembmarine to raise S$2.1b, demerge from parent Sembcorp, Companies & Markets

Mon, Jun 08, 2020 - 3:33 PM SEMBCORP Industries (Sembcorp) and Sembcorp Marine (Sembmarine) have proposed a major plan to rescue the marine gian

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Mon, Jun 08, 2020 – 3:33 PM

SEMBCORP Industries (Sembcorp) and Sembcorp Marine (Sembmarine) have proposed a major plan to rescue the marine giant with a S$2.1 billion cash call and to “demerge” from each other as the pandemic takes a toll on operations.

The plan will strengthen both companies’ financial positions and unlock shareholder value and is in the best interests of their respective shareholders, said the companies in a joint statement issued on Monday.

Sembmarine hopes to raise S$2.1 billion under a five-for-one renounceable rights issue at an issue price of 20 Singapore cents per share. Of that, Sembcorp has irrevocably undertaken to subscribe for S$1.27 billion (its pro-rata entitlement) plus take up an additional S$230 million, if necessary – a total commitment of up to S$1.5 billion.

Sembcorp said it plans to do this by setting off a S$1.5 billion subordinated loan that it had extended to Sembmarine in June 2019. Temasek Holdings has agreed to sub-underwrite the remaining S$600 million of the rights issue.

The rights price represents a 31 per cent discount to the theoretical ex rights price (TERP) based on Sembmarine shares’…



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