Business
24 Jun 2021 06:53PM
SINGAPORE: Keppel Corp and Sembcorp Marine have agreed to explore a potential combination of Sembcorp with Keppel’s offshore and marine (O&M) business.
“The objective of these discussions is to create a stronger combined entity and sustainable value over the long term for Keppel O&M and Sembcorp Marine and their respective stakeholders, in response to dramatic changes in the global offshore and marine engineering and energy sectors,” the companies said in a joint press release on Thursday (Jun 24).
Earlier, Reuters cited sources as saying the companies, which both count Temasek Holdings as their largest shareholder, were set to begin talks to explore combining their O&M businesses, which have been hit by years of oversupply and sustained weakness in oil prices.
Keppel is one of the world’s largest offshore oil rig builders. Sembcorp also announced a S$1.5 billion fully committed rights issue.
The statement said Keppel and Sembcorp will “undertake mutual due diligence and discuss the terms of the potential combination, which is expected to take several months".
Both companies said in the joint press release that they will provide further updates in due course and emphasised that discussions are at a preliminary stage and that "there is no certainty that the potential combination will take place".
Source: Reuters/lk
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Sembcorp Marine in talks to combine with Keppel's marine services business
A view of Keppel Shipyard in this photo provided by Keppel Corporation. (Photo: Keppel Coporation)24 Jun 2021 06:53PM
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SINGAPORE: Keppel Corp and Sembcorp Marine have agreed to explore a potential combination of Sembcorp with Keppel’s offshore and marine (O&M) business.
“The objective of these discussions is to create a stronger combined entity and sustainable value over the long term for Keppel O&M and Sembcorp Marine and their respective stakeholders, in response to dramatic changes in the global offshore and marine engineering and energy sectors,” the companies said in a joint press release on Thursday (Jun 24).
Earlier, Reuters cited sources as saying the companies, which both count Temasek Holdings as their largest shareholder, were set to begin talks to explore combining their O&M businesses, which have been hit by years of oversupply and sustained weakness in oil prices.
READ: Commentary: Keppel’s exit of rig business may have bigger implications for Singapore's offshore and marine sector
Keppel is one of the world’s largest offshore oil rig builders. Sembcorp also announced a S$1.5 billion fully committed rights issue.
The statement said Keppel and Sembcorp will “undertake mutual due diligence and discuss the terms of the potential combination, which is expected to take several months".
Both companies said in the joint press release that they will provide further updates in due course and emphasised that discussions are at a preliminary stage and that "there is no certainty that the potential combination will take place".
Source: Reuters/lk
Continue reading...