Temasek makes general offer for Sembmarine

Conditional cash offer of 8 cents per share to acquire all issued, paid-up ordinary shares

Temasek has made a mandatory conditional general cash offer to acquire all the issued and paid-up ordinary shares in Sembcorp Marine (Sembmarine), after Temasek's stake in the latter was raised to 46.6 per cent from 42.6 per cent due to its rights issue.

The offer is in line with Rule 14.1 of the Takeover Code, where any entity controlling 30 per cent to 50 per cent of a company must make a mandatory general offer if it raises its interest by more than 1 per cent within a period of six months.

Through its indirect wholly owned subsidiary, Startree Investments, the offer was made at a price of 8 cents per share in cash, which is in line with the rights issue price, Sembmarine said in a bourse filing yesterday.

It said Startree intends to keep Sembmarine listed on the Singapore Exchange following the completion of the offer. But it also noted that "Startree reserves the right to re-evaluate its position, taking into account, among other things, the level of acceptances received by Startree in respect of the mandatory general offer and the prevailing market conditions at the relevant time".

Startree was issued 9.3 million rights shares as a result of its undertaking in the rights issue, which raised its aggregate shareholding in Sembmarine by 4 per cent.

Sembmarine expects it will electronically disseminate the offer document between Oct 6 and Oct 13, and the offer will close 28 days after posting of the offer document.

Morgan Stanley Asia (Singapore) has been appointed as sole financial adviser to the offer.

Shares of Sembmarine closed up 0.3 cent, or 3.7 per cent, at 8.8 cents on Tuesday.


A version of this article appeared in the print edition of The Straits Times on September 23, 2021, with the headline 'Temasek makes general offer for Sembmarine'. Subscribe