On Tuesday morning, SCI and SMM held EGMs to table three inter-conditional resolutions to their shareholders. These include SCI's move to distribute its SMM shares in specie, SMM's rights issue, and a whitewash resolution that will waive investors' rights to receive a mandatory takeover offer from Temasek.. For SMM, 98.76 per cent voted for the rights issue, while 87.72 per cent voted for the whitewash resolution. Meanwhile, 99.
SMM had repeatedly stressed that the rights issue would provide the company with the “much needed recapitalisation”, or additional cash of approximately S$0.6 billion, to ride out the industry downturn, strengthen its balance sheet and reposition the firm for long-term viability. Both companies had urged investors to vote in favour of the three inter-conditional resolutions tabled at the EGMs, as the deal would fall through if any resolution was not passed.
KGI analyst Joel Ng said the successful outcome of the transaction signalled a “beginning of an offshore and marine industry consolidation in Singapore,” adding that similar consolidations have been taking place in countries such as China, South Korea and Europe.after Temasek Holdings pulled the plug on its S$4 billion partial offer for the conglomerate.
Mr Ng said the withdrawal meant that Temasek now has a war chest of S$4 billion and is likely to redeploy the capital in the Sembcorp companies.For daily updates on weekdays and specially selected content for the weekend. Subscribe to