Elevator Pitch
I maintain a Neutral rating on Singapore-listed conglomerate SembCorp Industries (Sembcorp Industries) (OTC:SCRPY) (OTCPK:SCRPF) [SCI:SP].
Sembcorp Industries and its 61%-owned subsidiary Sembcorp Marine (SMBMF) (SMBMY) [SMM:SP], proposed to be demerged via a distribution of Sembcorp Industries' shareholdings in Sembcorp Marine as share dividends to its shareholders. The million-dollar question for shareholders and prospective investors in Sembcorp Industries is whether the proposed demerger will lead to a positive valuation re-rating for Sembcorp Industries.
Sembcorp Industries (excluding the Marine business) is trading at an implied P/B valuation