Sembcorp Marine wins backing for $1.1 billion lifeline

摘要

SHAREHOLDERS of Singapore's offshore and marine contractor Sembcorp Marine this week voted in favour of a renounceable rights issue to raise S$1.5 billion (US$1.1 billion) in funds to support the company's operations. More than 98% of shareholders approved the group's proposed renounceable underwritten rights issue at an extraordinary general meeting (EGM). Under this exercise, shareholders will each receive three rights shares, individually priced at 8 Singapore cents, for every two existing shares held. Startree, an indirect wholly owned subsidiary of the Singapore government's investment arm Temasek, had given an irrevocable undertaking to Sembmarine to subscribe for its 42.6% entitlement to the rights shares. The funds raised will be used to service debt and also help Sembmarine boost its working capital. The contractor posted a first-half of 2021 net loss of S$647 million - including provisions of S$472 million - on revenues of S$844 million.