Sembcorp Industries and Sembcorp Marine (SembMarine) have jointly announced on Aug 11 that the recapitalisation of SembMarine through a proposed $2.1 billion renounceable rights issue, as well as the proposed demerger between both companies via a distribution in specie of SembCorp’s stake to SCI shareholders, have been approved by shareholders of both companies at their respective extraordinary general meetings (EGMs) earlier in the day.

See also: Conscious decoupling

An overwhelming 99.67% of Sembcorp Industries’ shareholders voted for the proposed distribution, while 98.76% of SembMarine’s shareholders voted for the proposed renounceable underwritten rights issue.

About 87.72% of SembMarine’s shareholders also voted for the whitewash resolution in relation to the Temasek Concert Party Group.

In a statement, Wong Kim Yin, group president and CEO of Sembcorp Industries says, “We are grateful for the support demonstrated by our shareholders today. Sembcorp Industries can now move forward as a focused energy and urban player.

“Sembcorp Industries has a strong portfolio, anchored in sectors providing essential solutions and in growing markets such as Asia. With increased strategic focus, we will be able to dedicate our resources and efforts to repositioning our businesses and capturing these growth opportunities. This includes opportunities in the renewable energy sector where Sembcorp Industries is already one of Singapore’s largest home-grown renewable energy players.

“We are also encouraged that we can provide support to Sembcorp Marine for its rights Issue that will enable it to better ride through the downturn and position itself for recovery. Our shareholders can now expect to receive shares in a stronger recapitalised Sembcorp Marine,” he adds.

On June 8, both companies jointly announced a demerger that will result in the cessation of Sembmarine as a 61%-owned subsidiary of Sembcorp. This will come after a recapitali­sation exercise of Sembmarine.

See also: Sembcorp Marine to raise $2.1 billion via rights issue; parent Sembcorp Industries to distribute stake in-specie to shareholders

As at 12.18pm, shares in both Sembcorp Industries and SembMarine were trading flat at $1.90 and 35 cents respectively.