Temasek's enhanced stake may fortify minority shareholders' faith in Sembmarine

IT IS hard not to feel pity for shareholders of Sembcorp Marine (Sembmarine).

Just before its recapitalisation plan was announced in early June, shares in the beleaguered offshore and marine (O&M) company traded at S$0.85.

In fact, the stock had climbed some 25 per cent in the preceding three trading days, possibly in anticipation of a deal involving an offer for the whole company.

Instead, the company unveiled a 5-for-1 rights issue of new shares at a deeply discounted price of S$0.20 that was to be followed by a distribution in-specie of its shares held by Sembcorp Industries (SCI).

Sembmarine, or SMM, lost abou…

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