Sias seeks answers from Sembcorp and Sembmarine ahead of EGMs

Investor group asks if other options have been looked into, such as privatising SCM

Angela Tan

Published Tue, Jul 14, 2020 · 09:50 PM

THE Securities Investors Association Singapore (Sias) is seeking answers from Sembcorp Industries (SCI) and Sembcorp Marine (SCM) on why they are undertaking a S$2.1 billion recapitalisation and divorce amid poor economic conditions.

The investor group wants to know whether the two have explored other options, including a privatisation of SCM, and why they consider their proposed transaction the best option.

SCI and SCM have proposed a recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue, and a proposed demerger of the two companies via a distribution in specie of SCI's stake in the recapitalised SCM to SCI shareholders.

SCM hopes to raise S$2.1 billion under a five-for-one renounceable rights issue at an issue price of S$0.20 per share. SCI has undertaken to subscribe for up to S$1.5 billion of rights shares, by setting off the S$1.5 billion outstanding under its subordinated loan to SCM. Temasek will su…