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Sembcorp Marine and Keppel begin long-awaited merger talk of O&M business

The Edge Singapore
The Edge Singapore • 5 min read
Sembcorp Marine and Keppel begin long-awaited merger talk of O&M business
The MOU is confirmation of a widely-expected restructuring exercise investors and analysts have been suggesting for years.
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Less than a year after a $2.1 billion rights issue last September, Sembcorp Marine is jolting shareholders again as it is reaching out its hand for another $1.5 billion.

The three for two rights issue, announced on June 24, is priced at 8 cents per share, or a discount of 58% off its last traded price of 19.1 cents on June 23 and 35.7% off its theoretical ex-rights price. The funds to be raised will lower SembMarine’s net gearing from 0.75 times as of Dec 31, 2020, to 0.25 times on a pro forma basis.

Of the $2.1 billion raised last September, some $1.5 billion was used to pay back an intercompany loan to Sembcorp Industries as part of their “demerger” exercise.

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