Slightly over a year ago, conglomerate Sembcorp Industries shook the market when it announced that Sembcorp Marine (SembMarine) will cease to be its 61%-owned subsidiary.

For many years, the offshore services provider was the crown jewel of Sembcorp when global demand for oil surged during the pre-GFC boom. But the persistent oil downturn — since mid-2014 — had worn off Sembcorp’s patience in the hope that SembMarine would turn around.

The demerger was undertaken together with a recapitalisation exercise of SembMarine. The offshore services provider successfully raised $2.1 billion from an issuance of five rights shares for every one Sembmarine share held at a rights issue price of 20 cents a share.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook