Semb Marine Keppel O&M merger, a harbinger future of Singapore likewise?

[bic_cherry]

Semb Marine Keppel O&M merger, a harbinger of Singapore future likewise?

All but one of the Semb Marine directors retire. Semb Marine (SM) with NTA of $3.8B merges with Keppel O&M (KOM) with NTA $860M.
So basically SM is 4.41x the book value worth of KOM.

But in the merged entity, SM share holders only own 46 of new entity shares but Keppel Corp (owner of KOM) gets 54% of the new entity equity shares.

So using Singapore as analogy, this country is like a multi stage rocket, dirty underwear or even like FTX-Alamedia Research. At a time point when the going gets tough, only one of the original directors is left as the entire board, save one retires and an almost brand new board is reconstructed, the entire company is in essence sold for a song because instead of holding 81.5% of the new SM-KOM merged entity (3.8/(3.8+0.86)), the SM shareholders only got measly 46%, which is only 56.4% of 81.5%, so the SM shareholders have been shortchanged by almost 44% in this merger and almost their entire board has retired.
So FTX-Alamedia Research is one example where the Managing directors resigned when faced with trouble. The first stages of a space rocket are dispensable and fall back to Earth as waste trash, likewise disposable underwear.

Is this a barbinger of the future for Singaporeans other than PAP leaders?

If no so, then how can this kind of obtuse mergers be considered responsible /fair?

https://www.straitstimes.com/busine...countability-with-keppel-offshore-marine-deal

 

[Patriotmissile]

Working as an employee especially that of directors continue to receive hefty salaries and bonuses over the losses of shareholders.
We are just trashy corporate culture. Look at how the former chairman of JAL turned the company around and you have respect for the Japs. Sinkies are just bozos and showoff.

 

[Dr Christopher Cheok C S]

10-20 years ago, Keppel Shipyard always outperform Semb Shipyard.
Now we know that it's because Keppel is more willing to bribe their clients.

Keppel has also financial issues with their offshore and marine business. Keppel was the darling of among the local GLCs and it had too much O&M baggage.

Now Sembcorp industries want to be ESG company and be the new darling, ridding Semb Marine is upmost essential for the new corporate image.

So both Keppel and Sembcorp can't wait to disown their O&M babies.
I guess post-merger, they will rename the merged entity without Semb or Kep surnames.

 

[Dr Christopher Cheok C S]

Working as an employee especially that of directors continue to receive hefty salaries and bonuses over the losses of shareholders.
We are just trashy corporate culture. Look at how the former chairman of JAL turned the company around and you have respect for the Japs. Sinkies are just bozos and showoff.

Too many army people in Semb and Keppel.

 

[laksaboy]

Too many army people in Semb and Keppel.

What did you expect? GLCs of a totalitarian shithole. And they still have a nerve to call them 'private companies'.

 

[50000]

its not a merger, its a reverse takeover. KOM has always been the better company and SembM is just one to pick up the scraps.

if not for the Brazil case, SembM would have been the one that gets eaten up

 

[batman1]

This is one big GRC.

 

[syed putra]

Can compete wifh china?

 

[bic_cherry]

its not a merger, its a reverse takeover. KOM has always been the better company and SembM is just one to pick up the scraps.

if not for the Brazil case, SembM would have been the one that gets eaten up

So according to ST, KOM worth peanuts compared to SM is getting a lion's share of the combined entity shares.

Sinkies are like SM shareholders.

The board basically sells them out and then retires (all but one director abandon ship literally).

In the new entity, they are the minority shareholder from them on. And the guy that takes them over has only equity of like under 18.5% of the total new entity value, he gets a controlling stake and a vast majority of the new entity shares.

Seems like Sinkies are like the SM shareholders, kena sold out and subsequently even kow tow to others, after the M&A process.

 

[Dr Christopher Cheok C S]

So both Keppel and Sembcorp can't wait to disown their O&M babies.
I guess post-merger, they will rename the merged entity without Semb or Kep surnames.

Seatrium’s net loss widens to $1.68 bil for 2HFY2023
https://www.theedgesingapore.com/ca...2023-records-revenue-growth-over-400-y-o-y-44