Corporate actions are often difficult for retail investors to comprehend because they are a fusion of finance concepts and law, douse in a sea of jargon. Fret not, it is my job to make it simple for you. I received some questions regarding the Sembcorp Marine Mandatory Conditional General Cash Offer and the investors were clueless what to do about it. So I’m going to do a quick explainer on this. Sembcorp Marine did a rights issue not long ago, so…

Why a Mandatory Offer now? Are they running out of money?

Relax, Sembcorp Marine is NOT running out of cash. The Offer is made by Startree who owns a stake in Sembcorp Marine, and it is an indirect subsidiary of Temasek – imagine Startree as the grandchild of Temasek. The money raised via this Offer will go to the pockets of those Sembcorp Marine shareholders who have decided to accept the Offer. No money goes to Sembcorp Marine....