Singapore’s Sembcorp Marine (Sembmarine) has agreed to a S$8.7 billion ($6.29 billion) merger with Keppel Corp’s larger offshore and marine unit, a year after the Temasek-backed firms began deal talks amid an industry downturn.
The downturn increased competition for a shrinking pool of projects, driving up industry debt levels and leading Sembmarine to raise S$3.6 billion of equity over the past two years, with strong backing by Singapore state investor Temasek.
Shares in Sembmarine, which was valued at S$4.1 billion as of Tuesday’s close, fell 11% to 11.7 Singapore cents on Thursday as trading resumed. Keppel’s shares rose 1.3%.
Read more: Reuters
Can't stop reading? This and all news articles are property of their creators, many are not owned or provided by Private Equity Insider. As an event organizer and community platform, we curate content from reliable sources for your suggested reading, and advise you to read the full articles from the referenced authors and sources.