Sembmarine's battered shares may look cheap now, but there are major risks ahead for investors
Positive news flow could trigger a bounce in the stock, but investors should wait until its merger with Keppel O&M is done and dusted
Add BT as a preferred source
SEMBCORP Marine (Sembmarine)'s board and top executives probably heaved a sigh of relief after shareholders of the beleaguered offshore and marine (O&M) company voted on Aug 23 to approve its controversial rights issue.
Clearing this crucial hurdle removed any doubt that Sembmarine would receive the S$1.5 billion it needs to see it through the next year - thanks to the support of the company's largest shareholder Temasek Holdings and rights issue underwriter DBS.
It remains to be seen how Sembmarine's minority shareholders respond to the rights issue, though. They have until Tuesday, Sept 14, to accept and pay for their rights shares.
TRENDING NOW
SpaceX surge further boosts Saudi billionaire prince’s fortune
Private equity giant Carlyle can grow bigger but needs to stay on its toes: co-founder David Rubenstein
Abandoned ‘Titanic’, failing ‘ancient towns’: Why China’s tourism boom leaves white elephants behind
Strong US dollar and tariff threats ignite broad Asian currency sell-off
