The demerger was undertaken together with a recapitalisation exercise of SembMarine. The offshore services provider successfully raised $2.1 billion from an issuance of five rights shares for every one Sembmarine share held at a rights issue price of 20 cents a share.
Slightly over a year ago, conglomerate Sembcorp Industries shook the market when it announced that Sembcorp Marine (SembMarine) will cease to be its 61%-owned subsidiary.
For many years, the offshore services provider was the crown jewel of Sembcorp when global demand for oil surged during the pre-GFC boom. But the persistent oil downturn — since mid-2014 — had worn off Sembcorp’s patience in the hope that SembMarine would turn around.
