Home Views Offshore & Marine

Terms of merger are unfair, says a top 20 Sembcorp Marine shareholder

Goola Warden
Goola Warden6/10/2022 09:38 PM GMT+08  • 7 min read
Terms of merger are unfair, says a top 20 Sembcorp Marine shareholder
Photo: Sembcorp Marine
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Analysts and The Edge Singapore have pointed out that the Keppel Offshore & Marine (KOM) and Sembcorp Marine (SCM) combination benefits Keppel Corp more than SCM. On June 10, an SCM shareholder Philip Loh, has started a “votenoformerger” page. Two points - highlighted by The Edge Singapore following the April 27 announcement - the exchange ratio in the combined entity and a controversial $500 million payment are points of contention for Loh.

According to SCM's FY2021 annual report, as of March 8, one Philip Loh Chin Hwee holds 50.5 million shares, equivalent to 0.16% of the company.

Let’s go back a bit. On June 6, based on an SGX release, SCM's management answered questions related to the sale of SCM into a combined entity with Keppel Corp which was referred to as Bayberry in Keppel’s Chapter 10 announcement. On Apr 27, Keppel and SCM jointly announced they would set up Bayberry. All of SCM’s shares will be placed in Bayberry in exchange for a Bayberry share. That is, SCM shareholders will all get shares in Bayberry on a 1-to-1 basis. Bayberry will be listed on the SGX.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.