Singapore’s Temasek Holdings has undertaken to subscribe for up to 67% of Sembcorp Marine’s latest rights issue.
The Singapore-listed shipyard group recently announced a SGD 1.5bn ($1.1bn) issue that the company described as “vital” in fortifying its financial position.
The company said the recapitalisation was needed to strengthen its balance sheet and enhance its liquidity position, resulting from the severe impact of Covid-19.
“This will better position it to bid for larger projects and accelerate its pivot into the fast growing renewable and clean-energy segment,” Sembcorp Marine said.
Temasek, through subsidiary Startree Investments, has undertaken to subscribe for its full allocation as well as apply for excess rights not taken up by other shareholders.
Singapore’s largest bank, DBS, has separately underwritten the remaining 33% of the rights issue.
Temasek also said its intention is to maintain the listing status of Sembcorp Marine on the Singapore Exchange although it “reserves the right to re-evaluate its position".
The sovereign wealth fund became a 42.6% shareholder in Sembcorp Marine after its demerger from Sembcorp Industries and acquired a further 8.2% in the company following its SGD 2.1bn recapitalisation.
Separately, Temasek said that the up-and-coming rights issue and the Sembcorp Marine combination with Keppel Corp’s offshore operation are “independent transactions” which will be “separately and independently” subject to shareholder votes.
It said is “improper to suggest” these are part of a corporate exercise to benefit Temasek at the expense of minority shareholders in Sembcorp Marine.
