Singaporean contractor Sembcorp Marine’s acquisition of compatriot Keppel Offshore & Marine will definitely slip into 2023, missing the year-end deadline originally touted for the merger of the two companies, according to Upstream.
The touted merger between Singapore’s leading offshore and marine contractors in late October took an unexpected turn with the proposed tie-up being replaced by plans for Sembmarine to acquire Keppel O&M in a S$4.5 billion (US$3.2 billion) deal.
Post-acquisition, Sembmarine will be a ‘combined entity’ as it will own a combination of its current business and Keppel O&M with the exchange ratio between Keppel O&M and Sembmarine being 54:46.
The direct acquisition of Keppel O&M was said to reduce consent and approval requirements and may reduce time to completion by up to two months versus the earlier proposed deal, Sembmarine earlier said, although it had admitted the deal might not close before the end of the year, as initially intended.
Sembmarine on 23 December said that all submissions relating to the acquisition have now been made to the relevant authorities and it continues to work towards convening the extraordinary general meeting [to approve the deal] as soon as possible.
The offshore and marine contractor revealed it now expects this EGM to take place in January 2023.
“The proposed combination is also subject to other customary closing conditions and approvals,” confirmed Sembmarine, adding it would make further announcements, in compliance with the requirements of the listing manual, as and when there are material developments in respect of the ‘proposed combination’.
“We hope to preserve Singapore’s marine and offshore engineering ecosystem and the industry’s core capabilities developed over the decades by two homegrown companies that have become established global players,” Sembmarine chairman Mohd Hassan Marican earlier said.
“An enlarged Sembmarine is better positioned to advance Singapore’s O&M and maritime interests and augment the sector’s potential as a growth engine for the economy, providing jobs and business opportunities.”