Keppel signed a definitive settlement for a proposed merger of its offshore and marine (O&M) enterprise with Sembcorp Marine, the businesses stated on Wednesday (Apr 27).
The deal would allow Keppel to spin off its new enterprise right into a listed entity and exit the legacy enterprise, with Singapore state investor Temasek turning into the most important shareholder within the mixed firm.
Keppel stated that the steps taken for the proposed merger will allow it to realise S$9.42 billion (US$6.84 billion) in worth over time.
Smaller rival Sembcorp Marine and Keppel’s O&M unit, one of many world’s largest offshore oil rig builders, have suffered from provide chain points and labour shortages. But a latest surge in oil costs has promised an bettering outlook for the business and new order wins.
Upon completion of the merger, Keppel and its shareholders will personal 56 per cent of the mixed entity, whereas Sembcorp Marine’s shareholders will personal the remaining, the businesses stated.
Keppel stated it’s going to distribute in-specie 46 per cent of the shares within the merged entity to its shareholders and retain a ten per cent stake.
Both the businesses are anticipated to convene shareholder conferences within the fourth quarter of 2022 for approving the proposed merger, Keppel stated.
Source : channelnewsasia.com