Merger between Keppel Corp and Sembcorp Marine finally taking place
Both Keppel and Sembcorp Marine requested for their share prices to be halted before the start of market trading on 24 June. According to the Straits Times report quoting sources from Reuters, both companies are in the process of kicking off talks to explore combining their struggling Offshore and Marine (O&M) businesses.
This merger between both their O&M entities is long overdue. I have commented previously that Keppel divesting its O&M assets, with the blessing of key shareholder Temasek will be the key catalyst that is needed to propel its share price higher.
After the market closes on 24 June 2021, both companies announced that they will be signing a non-binding MOUs in connection with the proposed combination of Keppel O&M and Sembcorp Marine.
The announcement can be found here.
Before I go into the details of the MOU, a quick background of what happened over the past year....