Keppel Corporation and Sembcorp Marine (SembMarine) has, on March 31, announced that they have made “significant progress” on advancing the proposed combination of Keppel Offshore & Marine (Keppel O&M) and SembMarine.
The progress includes mutual due diligence, the transaction structure, exchange ratio and other related matters.
However, more time and deliberation will be required to complete the due diligence, says Keppel Corp and SembMarine in a joint statement.
Both parties will also require more time in reaching a mutual agreement on the transaction terms and finalising definitive legal documentation.
They have both committed to continue with their negotiations and work towards having a “definitive agreement” by April 30.
The update comes after analysts indicated that both parties will announce a definitive agreement at the end of March following the signing of the non-binding memorandum of understanding (MOU).
See also: Send Notif Breaking NewsQA Foreground
In addition, Keppel Corp announced that it has made progress on advancing the sale of Keppel O&M’s legacy rigs and associated receivables to a separate company that would be majority owned by external investors.
The transaction to the separate company and the proposed combination will be inter-conditional. They are being pursued concurrently.
Further to the joint statement, both parties have emphasised that there is no guarantee that there may be a definitive agreement on the outcome of the proposed combination in spite of the ongoing discussions.
Shares in Keppel Corporation and SembMarine closed at $6.42 and 9.8 cents respectively on March 31.
