Sembmarine shareholders vote in favour of S$1.5b rights issue
Of the shares voted, nearly 6.451 billion or 98.05 per cent were in favour of the cash call
Singapore
SHAREHOLDERS of Sembcorp Marine (Sembmarine) on Monday voted in favour of the company's controversial S$1.5 billion rights issue.
Nearly 6.579 billion shares, or about 52.4 per cent of Sembmarine's total outstanding 12.555 billion shares, were voted at the extraordinary general meeting.
Of the shares voted, nearly 6.451 billion or 98.05 per cent were in favour of the rights issue.
Fewer than 128 million shares, or 1.95 per cent, voted against the rights issue resolution.
No party was required to abstain from voting on the resolution.
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Temasek - through its wholly-owned unit Startree - holds more than 5.353 billion Sembmarine shares, or some 42.6 per cent of the company. The bulk of its Sembmarine shares were obtained from Sembcorp Industries' distribution in-specie last year of its then controlling stake in the beleaguered offshore and marine company.
Sembmarine on June 24 announced a 3-for-2 rights issue of new shares priced at S$0.08 each to raise S$1.5 billion. The rights price was a 35.7 per cent discount to the theoretical ex-rights price, and a 58.1 per cent discount to the stock's last traded price of 19.1 Singapore cents on June 23, before the announcement.
Temasek has pledged to subscribe for both its pro-rata entitlement as well as excess rights, to take up as much as 67 per cent of the rights issue, representing a commitment of up to S$1 billion. DBS will underwrite the remaining 33 per cent.
In the event Temasek's stake increases by 1 per cent following the latest rights issue, a mandatory general offer (MGO) will be triggered. Under the MGO, Temasek will be obliged to offer eight cents per share.
Last year, Sembmarine raised S$2.1 billion via a 5-for-1 rights issue priced at 20 cents per share. The issue was undersubscribed, with valid acceptances and excess applications received for 9.4 billion rights shares - 90.2 per cent of the nearly 10.5 billion rights shares available. The 1.03 billion unsubscribed rights shares were mopped up by Temasek.
Sembmarine has said the latest rights issue is critical to overcome the challenges of the Covid-19 pandemic, including supply chain disruptions and a lack of skilled manpower, which has impacted yard operations and its ability to complete projects.
Sembmarine also thanked shareholders for their "consideration and support" for the rights issue at the EGM on Aug 23.
Shares of Sembmarine ended Monday at 10.7 Singapore cents, up 3.9 per cent or 0.4 cent.
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