SembCorp Industries ("SCI") just announced a demerger from SembCorp Marine ("SCM"). You can find the official filing [here]. SCI Shareholders will receive between 427 and 491 SCM Shares for every 100 SCI Shares owned. Additionally, SCM will undertake a Right Offering with 5 SCM Rights for every 1 existing SCM Share at S$0.20 per SCM Right. SCM is expected to receive approximately S$2.1b from this right issue. SCI will subscribe for up to S$1.5b of Rights by offsetting the S$1.5b loan extended to SCM. Temasek will mop up the remaining S$0.6b. (So it looks like SCM won't be reaching out to ordinary shareholders for money.) SCI shareholders can heave a sigh of relief that the deadweight dragging down the performance of the conglomerate can finally be cast off. Whether SCM sink or swim will no longer have impact on the mothership. Once SCM is standing on its own, perhaps Mr. T will politely ask Keppel O&M to take a look and see...