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OFFSHORE CONSOLIDATION

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Keppel, Sembmarine begin talks on merger of O&M operations

Market watchers are unsurprised by the development, and believe this could lead to a re-rating of Keppel's shares

Uma Devi

Published Fri, Jun 25, 2021 · 05:50 AM

keppel

Singapore

BN4 and S51 : S51 0% (Sembmarine) will kick off talks that could see a merger of their offshore and marine (O&M) operations and leave both companies in stronger positions.

The two companies on Thursday signed a non-binding memorandum of understanding (MOU) to enter into exclusive talks with the aim of merging Keppel O&M and Sembmarine.

Discussions and due diligence are expected to take several months, but the envisioned plan is for a combined entity that will be owned by both Sembmarine's shareholders and Keppel's shareholders.

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