Sembmarine offer: mandatory for Temasek but not for shareholders

BASED on feedback received by the Securities Investors Association (Singapore) or Sias, there is confusion and misunderstanding within some segments of the retail investing public over Temasek Holdings' mandatory conditional general offer to acquire all the issued and paid-up ordinary shares in Sembcorp Marine (Sembmarine).

Some retail investors think that whenever a takeover offer is tabled, it must be at a premium to the share price at the time in order to make sense. Since Sembmarine's shares traded just above S$0.08 on Sep 22 when the offer was announced, they are wondering why Temasek has been allowed to offer only S$0.08.

Others have asked if the word "mandatory'' means that they are compelled by law to accept the offer.