- Sembcorp Marine will issue a renounceable rights issue of 5 rights shares for every 1 existing Sembcorp Marine share at S$0.20. This is not to acquire some assets but to re-capitalize SMM.
- The proceeds will be mainly used to replace existing debt that was mainly issued by parent Sembcorp Industries
- After the rights issue, Sembcorp Industries will distribute the 100% Sembcorp Marine shares they own to existing shareholders. Roughly each SCI shareholders would receive between 427 and 491 SMM shares for every 100 SCI shares they owned.
There are some deals that you have to treat as homework.
Going through some of these deals are both a mental exercise but also whether we are able to identify whether any part of the deal is attractive enough.
Sembcorp Industries(SCI) and Sembcorp Marine (SMM) were halted a few days ago. There were speculations of privatizations and rights issue but yesterday we get a better picture of it.
There are 2 parts to this deal:
