Sembcorp Marine | Hold Target price: S$1.61 April 6 close: S$1.855 UOB Kay Hian, April 6

TRANSOCEAN is rumoured to be acquiring the West Rigel. The West Rigel is a US$568 million harsh environment semi-submersible ordered by North Atlantic Drilling (NADL) in 2012. It is held by Sembcorp Marine (SMM) and NADL in a 77:23 joint venture as part of a standstill agreement in end-2015. Materialisation of the deal will be a huge boon to SMM as it removes a risky, sizeable order from its balance sheet. Furthermore, it removes any future complications that may arise should JV partner NADL get impacted by Seadrill entering Chapter 11. A transaction will free up capital locked up in the project, allowing SMM to deleverage its balance sheet. This alone is the more crucial point in the current environment as weak earnings are likely to be a facet of the business for the next few years.

Spackman Entertainment Group | Buy Target price: S$0.27 April 6 close: S$0.173 RHB, April 6