Keppel, SembMarine: sale of non-core assets 'a more likely scenario' (Amended)

Singapore

KEPPEL Corporation and Sembcorp Marine are likely to sell some non-core assets to raise cash - Keppel could let go its stake in M1 - before pursuing a cut in dividends and raising capital through a rights issue, a brokerage report has said.

In exploring the pre-emptive options for the two rigbuilders as oil prices may stay low for some time, OCBC Investment Research said Keppel is unlikely to acquire Sembcorp Marine, given that Keppel has been diversifying from the offshore-and-marine (O&M) segment, and already has spare capacity to handle.