There were a few comments from readers regarding the rights issue by SembMarine (SMM) and also how SembCorp Industries (SCI) would distribute its stake in SMM as dividends to SCI shareholders.
Basically, SMM is issuing rights in a 5 for 1 rights issue priced at 20 cents per rights.
Depending on the response to the rights issue, each SCI shareholder will get between 427 to 491 SMM shares for every 100 SCI shares they hold.
The question some might ask is "how much is each SMM share going to go for after the exercise is over"?
Well, your guess is as good as mine.
If we use the rights issue price of 20c per rights share, getting 427 SMM shares means getting $85.40 worth of shares.
If we were to buy SCI at $1.95 per share today, the implication is that our cost...