Analysts have had a mostly bearish reaction to Sembcorp Marine’s (SembMarine) announcement of its proposed $1.5 billion rights issue, which it announced the same day it inked a memorandum of understanding with Keppel Offshore & Marine for a potential merger.

See also: SembMarine seeks to raise $1.5 bil through rights issue; enters into MOU with Keppel O&M on potential merger and Sembcorp Marine and Keppel begin long-awaited merger talk of O&M business

OCBC Investment Research downgraded its call for SembMarine from “hold” to “sell”, with a lower target price of 9 cents. UOB Kay Hian also reduced its target price to 12.4 cents, while maintaining a “hold” rating. 

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