Temasek to take up 49% of Sembmarine rights issue; compliance offer expected

TEMASEK Holdings will take up 49.3 per cent of Sembcorp Marine (Sembmarine)'s rights issue, which means it will need to make a compliance offer for all shares of Sembmarine that it does not already own.

In a statement late on Friday night, Sembmarine S51 announced its rights issue had closed on Sept 14 with valid acceptances for 15.9 billion or 84.2 per cent of the rights shares on offer. Excess applications were made for 6.3 billion rights shares, or 33.5 per cent of the total rights shares available.

The acceptances and applications include those of Startree Investments, a wholly owned unit of Temasek, for 12.6 billion of the rights shares.

Temasek will receive its pro rata allotment of 8 billion as well as excess allotments of 1.2 billion shares, for a total of 9.3 billion shares.

This would take Temasek's stake in Sembmarine to 46.6 per cent.

When the offer information statement was released, Temasek held 42.6 per cent of Sembmarine.

Under Rule 14.1 of the Take-over Code, any entity controlling 30 to 50 per cent of a company must make a mandatory general offer if it raises its interest by more than 1 per cent within a period of six months.

The rights shares are expected to be credited on or around Sept 22, and trading of these shares will commence from 9am on Sept 22.

Shares of Sembmarine closed Friday at 8.4 Singapore cents each, up 0.1 cent for the day or 1.2 per cent.

Sembmarine said it expects Startree will announce its intention to make the compliance offer upon allotment and issuance. Temasek's offer price must be the same as the rights issue price of 8 cents per share.

At the time of the rights issue announcement, Temasek had said it did not intend to seek a whitewash waiver on its obligation to make on its offer for Sembmarine.

In a statement, Sembmarine's chairman Mohd Hassan Marican thanked shareholders for their support of the rights issue.

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