Dear readers, yes, finally the verdict on Sembcorp Marine stock is out. Sembcorp Marine is in plan to raise $2.1 billion with support from Temasek and will be demerged from its parent company, Sembcorp Industries.
I was at least partially correct on the longer-term outcome of Sembcorp Marine stock and Sembcorp Industries stock. While Sembcorp Marine stock will not be privatised as what I have expected, the longer-term consolidation of the local offshore energy and marine sector and the refocusing of Sembcorp Industries to energy and utilities are within my expectation.
I would think the demerging of Sembcorp Marine from Sembcorp Industries is but just one of the first steps to further consolidate the offshore and marine sector here. In this regard, I could think there will be further consolidation in Singapore’s offshore and marine sector going forward.
Sembcorp Marine is currently owned by Temasek Holdings with a 60.98% stake. Arising from the proposed demerger, Temasek Holdings will hold a stake of more than 29%. As such, the proposed demerger is to the effect of paring down Temasek Holding’s stake in Sembcorp Marine.
Keppel Corporation, through its subsidiary company, KS Investment Pte Ltd has (a) a 24.4% stake in one small-cap offshore and marine stock, Dyna-Mac and (b) a 6.24% in another small-cap offshore and marine stock, Penguin International. Keppel Corporation in turn is 20% owned by Temasek Holdings.
Temasek Holdings has a 4.06% stake in Ezion Holdings, an offshore and marine company. Ezion Holdings in turn has a 41.5% stake in Charisma Energy, another offshore and marine company.
With Temasek Holding paring down its stake in Sembcorp Marine through the proposed demerger, will Dyna-Mac stock, Penguin International stock, Ezion Holdings stock, Charisma Energy stock, all of which are offshore marine and energy stocks which Temasek Holdings has stake in too be of focus next?
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