Earlier today Sembcorp Marine (SCM) announced a recapitalization of S$2.1bn via a rights issue of 5 SCM rights shares for every SCM share currently outstanding at an issue price of S$0.20 per rights share. The amount raised will be supported by an undertaking by Sembcorp Industries (SCI) and Temasek to subscribe for up to S$1.5bn and S$0.6bn respectively.
What is Temasek’s endgame
It would be interesting to see what Temasek is planning for SCM as orders have been declining over the past few years since the industry downturn started in 2014. Last year, Temasek did a partial offer for Keppel at $7.35 during which there was chatter that there might be some sort of reorganization of Temasek’s offshore marine portfolio by potentially merging Keppel O&M and Sembcorp Marine. There could also be some reorganization of the various portfolios under Keppel and SCI as both do have some other overlapping areas like renewables and infrastructure.