Sembcorp Marine shares jump on reports of rescue by parent

Ships undergo repairs and upgrades at Sembcorp Marine Ltd's Admiralty Yard in Singapore on Jan 13, 2016.
Ships undergo repairs and upgrades at Sembcorp Marine Ltd's Admiralty Yard in Singapore on Jan 13, 2016.PHOTO: REUTERS

SINGAPORE - Singapore-listed rig builder Sembcorp Marine shares jumped on Wednesday (Jan 20) after reports its parent, Sembcorp Industries, might inject funds or take full control of the company to replenish finances strained by a collapse in oil prices.

SembMarine rose as much as 8 per cent to S$1.60, before paring gains to trade up 6.1 per cent at S$1,570 as of 11:06am. The benchmark Straits Times Index was down a hefty 2.06 per cent.

Shares of Sembcorp Industries, which holds 61 per cent of Semb Marine, slid as much as 6.7 per cent to S$2.37 for the worst performance on the STI. The counter was down 5.12 per cent at S$2.41.

Talk of a potential merger between SembMarine and its bigger rival Keppel Corporation sent Keppel's share price down as much as 5 per cent on Wednesday morning. They were 4.63 per cent lower at S$4.94 as of 11:06am.