Sembcorp Marine and Keppel Offshore & Marine complete merger

The merger of Singapore’s two main shipyard groups – Keppel Offshore & Marine (Keppel O&M) and Sembcorp Marine – has been completed.

In an announcement on the Singapore Exchange late Tuesday, Sembcorp Marine said it had completed its proposed merger with Keppel O&M.

The merger was completed by Sembcorp Marine acquiring all of Keppel O&M’s issued and paid-up capital and subsequently issuing 36,848,072,918 KOM Consideration Shares. Following the transaction, Keppel shareholders owned 54% of the combined company, which trades on SGX as Sembcorp Marine.

The former head of Keppel O&M has been appointed CEO of the newly merged shipyard and a new board of directors has been appointed, including former Royal Dutch Shell executive vice president Mark Gainsborough as independent chairman.

The combined group will continue to operate under the Sembcorp Marine name pending rebranding at a later date.

The shipyard group has a combined order book valued at SGD 18 billion (US$13.4 billion) for delivery between 2023 and 2026.

“While integrating this scale will present challenges, the expanded group is expected to benefit from greater synergies from the broader geographic footprint, larger operational scale and enhanced capabilities of Singapore’s two leading O&M companies,” said Sembcorp Marine in its on February 27th.

A town hall for the merged shipyard group was held on Wednesday morning, according to social media posts.

Source: News Network