Southeast Asia

Singapore Marine Companies to Merge as Downturn Weighs

 

Singapore’s Sembcorp Marine has agreed to combine with local conglomerate Keppel’s larger offshore and marine unit, a year after the Temasek-backed firms started deal talks to cope with an industry downturn.

Keppel Offshore & Marine, one of the world’s largest offshore oil rig builders, and Sembcorp Marine have suffered from a prolonged and severe sector downturn over many years.

A surge in oil prices has partly improved the industry outlook.

“The combined entity will be well-positioned to capture opportunities arising from decarbonisation in the oil and gas sector and from the global energy transition towards renewables, particularly in the areas of offshore wind, and new energy sources,” the companies said in a joint statement on Wednesday.

Once the merger is completed, Keppel and its shareholders will own 56% of the combined entity, while Sembcorp Marine’s shareholders will own the rest.

Keppel will distribute in-specie 46% of the merged entity’s shares to its shareholders and retain a 10% stake.

Singapore state investor Temasek, Sembcorp Marine’s majority shareholder, will become the largest shareholder in the combined company with a 33.5% stake. The marine company was valued at S$4.1 billion ($3 billion) as of Tuesday’s closing price.

JPMorgan is the financial adviser to Keppel on the deal, while Credit Suisse is the financial advisor to Sembcorp Marine.

 

  • Reuters, with additional editing by George Russell

 

 

READ MORE:

Singapore Press to Scrap Keppel’s Offer, Allows Rival Bid

Singapore’s Keppel Ploughs $250m into Saudi Pipeline Firm

Sumitomo and Keppel Unit Sign Deal to Develop Ammonia Fuels

 

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

Recent Posts

Investors Suspect Beijing Behind Controlled Yuan Decline

The currencies of China's trading partners have weakened faster than the yuan recently, eroding the…

15 hours ago

Shimao Bondholders Group to Vote Against Debt Revamp Plan

The creditors’ opposition to the proposal could be a major problem for the ailing property…

17 hours ago

China’s Country Garden ‘Hires Kroll For Liquidation Assessment’

Sources say China's biggest developer, which went into default in October with debts of $190…

20 hours ago

Xi to Visiting Dutch PM: No One Can Stop China’s Tech Progress

The Chinese president also warned his Dutch counterpart against restricting chip ties with Beijing, amid…

20 hours ago

Alibaba Ditches Cainiao IPO, Offers to Buy Remaining Shares

The e-commerce giant has abandoned plans to list its cross-border logistics unit and is offering…

21 hours ago

China ‘Closing Gap’ on US in Quantum Technology Race – SCMP

China leads the world in the number of patents filed for quantum computing technology but…

22 hours ago