Three questions for Sembcorp Marine's board in wake of recent proposals

THE board of Sembcorp Marine should provide a more thorough explanation for why its recent proposals - which were immediately followed by a slump in its already depressed share price - are in the interest of minority investors.

On June 24, Sembmarine announced plans to raise S$1.5 billion through a three-for-two rights issue at a deeply discounted price of S$0.08 per share.

The company said Temasek Holdings would subscribe for its 42.6 per cent entitlement and excess rights such that its total subscription would be up to 67 per cent of the rights issue. DBS is underwriting the remaining 33 per cent of the rights issue.