AM Sunday, marine engineering company SembCorp Marine said that it has enlarged its interests in the capital of its wholly owned subsidiary, Jurong Shipyard Pte ltd by S$300 million through the subscription of 30 million redeemable preference shares at an issue price of S$1.00 each. The company said a part of the fund will be used by Jurong to make payment of Societe Generale to close out certain unauthorized trading.
SembCorp Marine, which is indirectly controlled by Singapore government, said it now holds 50 million ordinary shares and 300 million redeemable preference shares in the capital of Jurong Shipyard Pte ltd (JSPL). SembCorp said that the subscription is not expected to have any material impact on the net tangible assets or earnings per share of the company for the present financial year ending December 31.
SembCorp said that parts of the funds from the recapitalization will be utilized by JSPL to make a conditional payment on November 19 to Societe Generale in the sum of US$115.45 million together with agreed interest, which payment was a pre-condition set by Societe Generale for the closing out of this transaction with JSPL's position that the transactions are unauthorized and is subject to JSPL's right to refund of the monies from Societe Generale in the event that the dispute on the validity of the deal is finally resolved in JSPL's favor. This amount is part of the loss of US$303 million announced on November 1 from the unauthorized transactions which JSPL maintains are not valid and binding.
On October 23, SembCorp Marine discovered unauthorized foreign exchange deals leading to $248 million in losses. The company fired its financial director Wee Sing Guan, who was alleged to be responsible for these unauthorized trades. SembCorp revealed an unrealized loss of about $165 million--excluding a $83 million payment made by the SembCorp subsidiary at the center of the foreign exchange fiasco, Jurong Shipyard, to an undisclosed creditor bank before the irregularities were discovered. SembCorp offset part of the loss by selling its holding in China Cosco's Singapore-listed shares for $157.53 million or S$230 million.
SMBMF.PK closed Friday's regular trading session at $2.99 and SCGLY.PK at $30.05. SCGLF.PK traded last on Wednesday at $155.45.
SembCorp Marine, which is indirectly controlled by Singapore government, said it now holds 50 million ordinary shares and 300 million redeemable preference shares in the capital of Jurong Shipyard Pte ltd (JSPL). SembCorp said that the subscription is not expected to have any material impact on the net tangible assets or earnings per share of the company for the present financial year ending December 31.
SembCorp said that parts of the funds from the recapitalization will be utilized by JSPL to make a conditional payment on November 19 to Societe Generale in the sum of US$115.45 million together with agreed interest, which payment was a pre-condition set by Societe Generale for the closing out of this transaction with JSPL's position that the transactions are unauthorized and is subject to JSPL's right to refund of the monies from Societe Generale in the event that the dispute on the validity of the deal is finally resolved in JSPL's favor. This amount is part of the loss of US$303 million announced on November 1 from the unauthorized transactions which JSPL maintains are not valid and binding.
On October 23, SembCorp Marine discovered unauthorized foreign exchange deals leading to $248 million in losses. The company fired its financial director Wee Sing Guan, who was alleged to be responsible for these unauthorized trades. SembCorp revealed an unrealized loss of about $165 million--excluding a $83 million payment made by the SembCorp subsidiary at the center of the foreign exchange fiasco, Jurong Shipyard, to an undisclosed creditor bank before the irregularities were discovered. SembCorp offset part of the loss by selling its holding in China Cosco's Singapore-listed shares for $157.53 million or S$230 million.
SMBMF.PK closed Friday's regular trading session at $2.99 and SCGLY.PK at $30.05. SCGLF.PK traded last on Wednesday at $155.45.