After almost one year of negotiations, Keppel Corporation and Sembcorp Marine have reached an agreement for the combination of Keppel Offshore & Marine and Sembcorp Marine creating a mega yard entity in Singapore.
The two parties have been in negotiations since June last year, when an MOU was signed to enter into exclusive negotiations to combine.
The combination is based on a 50:50 enterprise value ratio between Keppel O&M and Sembcorp Marine, and after taking into account the respective capital structures of the two companies and other factors, the agreed equity value exchange ratio will result in Keppel shareholders owning 56% of the combined entity and Sembcorp Marine shareholders owning 44%.
Singapore’s state-owned fund Temasek will hold 33.5% and be the largest shareholder of the new enlarged entity.
Keppel O&M’s legacy rigs and associated receivables will not be part of the combination.
Loh Chin Hua, CEO of Keppel and chairman of Keppel O&M, said, “The signing of a win-win agreement on the proposed combination of Keppel O&M and Sembcorp Marine marks a strategic milestone for the offshore & marine sector. It brings together two leading O&M companies in Singapore to create a stronger player that can realise synergies and compete more effectively amidst the energy transition. Together with the resolution of Keppel O&M’s legacy rigs, this is a major step forward in Keppel’s Vision 2030 journey, as we simplify our business and sharpen our focus on providing solutions for sustainable urbanisation.”
Tan Sri Mohd Hassan Marican, chairman of Sembcorp Marine, said, “The proposed combination marks a major milestone in Sembcorp Marine’s strategic business transformation journey since 2015 to stay resilient amid dramatic changes in our industry. Sembcorp Marine and Keppel O&M are Singapore’s homegrown marine icons. I am confident the combined entity, with its larger operational scale, broader geographical footprint and enhanced capabilities, will create a leading Singapore player to capitalise on the opportunities in the offshore and marine, as well as the renewable and clean energy sectors.”
The deal is subject to regulatory approvals, while shareholder approvals will be sought in the fourth quarter of 2022.
Source: Splash 247
| Read Here | |
|
|
