In today’s briefing:
- Sembcorp Marine and the Keppel O&M Business Combination – Brighter Light at the End of the Tunnel
- The Keppel Restructuring – Forward Sum Of The Parts Makes KEP Look Cheap. And It Is… But…
- Keppel: A Massive Winner from Keppel O&M and Sembcorp Marine’s Combination
- Sembcorp Marine & Keppel O&M Combination: Details & Index Implications
Sembcorp Marine and the Keppel O&M Business Combination – Brighter Light at the End of the Tunnel
- Keppel Corp and Sembcorp Marine have announced the O&M business combination and it is a little more interesting than expected. It is a Very Big Desirable Order Book.
- Separately, there is the potential for more index inclusion flow based on the conclusion of the combination in Q4.
- The light at the end of the tunnel used to be far away, and one was never sure if it wasn’t an oncoming train. It’s closer and clearer now.
The Keppel Restructuring – Forward Sum Of The Parts Makes KEP Look Cheap. And It Is… But…
- The Keppel O&M / SMM Combination and Keppel Rig Asset Restructure were announced today and the arithmetic is both tough and interesting. There’s a little magic here.
- KEP shareholders receive SMM shares worth ~1/3 of today’s share price, and the rest is currently valued at well under Net Tangible Assets post-Restructuring/Transaction.
- That suggests Keppel has upside, but one must think carefully about the exposures.
Keppel: A Massive Winner from Keppel O&M and Sembcorp Marine’s Combination
- The terms for the proposed combination of Keppel O&M and Sembcorp Marine (SMM SP) were announced. The agreed equity value exchange ratio between Keppel O&M and Sembcorp Marine is 56%:44%.
- The proposed combination will require Keppel Corp (KEP SP) and Sembcorp Marine shareholder approvals at separate EGMs and is expected to close in 4Q2022.
- The transaction is a big win for Keppel shareholders as the proposed combination creates S$9.4 billion of value, which is around 80% of Keppel’s market cap at the last close.
Sembcorp Marine & Keppel O&M Combination: Details & Index Implications
- Keppel Corp and Sembcorp Marine have announced a proposed combination of Keppel O&M and Sembcorp Marine to create a global player in offshore renewables, new energy and cleaner O&M solutions.
- Keppel Corp (KEP SP) and its shareholders will own 56% of the combined entity, while Sembcorp Marine (SMM SP) shareholders will own the other 44%.
- Depending on the combined entity market cap, there could be selling from MSCI Standard and FTSE Straits Times Index (STI) (STI INDEX) trackers at the time of implementation.
Before it’s here, it’s on Smartkarma
