June 8, 2020 / 6:27 AM / 24 days ago

Sembcorp Marine proposes $1.5 bln rights issue backed by Temasek

SINGAPORE, June 8 (Reuters) - Loss-making Sembcorp Marine on Monday proposed a S$2.1 billion ($1.5 billion) recapitalisation through a rights issue that will be backed by the rig builder’s parent firm, Sembcorp Industries, and state investor Temasek Holdings.

Sembcorp Marine and Sembcorp Industries also said that following the rights issue and a settlement of a loan, Sembcorp Industries proposed to demerge its core business from the stake in the rig builder.

The move came after shares in Sembcorp Marine and Sembcorp Industries were halted from last Thursday, prompting speculation among some analysts about a potential deal between the two firms.

$1 = 1.3938 Singapore dollars Reporting by Anshuman Daga and Aradhana Aravindan; Editing by Tom Hogue

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