Keppel O&M and Sembcorp Marine announce merger 

Keppel will own 56%, and Sembcorp Marine 44% of the combined entity from the merger.  

Keppel Corporation Limited and Sembcorp Marine Ltd signed definitive agreements for the proposed combination of the former’s offshore & marine business with Sembcorp Marine to focus on offshore renewables, new energy, and cleaner solutions.

In a joint statement, the two firms announced that the combined business will bring together world-class engineering capabilities, track records, and reputations for the quality and reliability of two companies with complementary competencies and operations.

Sembcorp Marine will undergo internal restructuring, where its shareholders will exchange their shares in the combined business on a one-for-one basis. It will then transfer its listing status on the mainboard of Singapore Exchange to the combined entity.

A Combined Entity will be merged with the restructured Keppel O&M via a separate scheme of arrangement. After this, Keppel O&M and Sembcorp Marine will become wholly-owned subsidiaries of this entity.

Keppel O&M will sell its legacy rigs and associated receivables to a company that is 10%-owned by Keppel and 90%-owned by other investors. It will transfer other out-of-scope assets to Keppel.

The proposed merger is based on a 50:50 enterprise value ratio between  Keppel O&M and Sembcorp Marine. 

Keppel and its shareholders will own 56% of the combined entity, whilst Sembcorp Marine shareholders own 44% after the merger's competion.