KPELF - Keppel Sembcorp in talks to combine offshore and marine businesses
Keppel Corp. (KPELF) and rig-builder Sembcorp Marine (SMBMF) say they have started talks to potentially combine their struggling offshore and marine businesses.The Singapore-listed companies say they signed a non-binding memorandum of understanding to consider combining Keppel Offshore & Marine with Sembcorp Marine.Keppel says it could receive shares in the new entity and as much as 500M Singapore dollars (US$371.5M) if the deal goes through.Separately, Sembcorp Marine says it plans to raise up to S$1.5B in a rights issue to strengthen its balance sheet.Temasek Holdings last year abandoned an effort to take control of Keppel after the rig-builder posted heavy losses.
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Keppel, Sembcorp in talks to combine offshore and marine businesses