A MINORITY shareholder of Sembcorp Marine : S51 -0.83% (Sembmarine) – who identifies himself as Philip Loh – is urging other shareholders to vote against the company’s proposed merger with the offshore and marine arm of Keppel Corp.
Claiming to be among the 20 largest shareholders of Sembmarine, Loh has started what appears to be a website (http://www.votenoformerger.com/) to campaign against the “highly disadvantageous” deal.
As announced on Apr 27, the proposed combination of Sembmarine and Keppel O&M is based on a 50-50 enterprise value ratio. Following the combination, Keppel will own 56 per cent of the combined entity, while Sembmarine shareholders will own 44 per cent.
Keppel will then distribute in-specie 46 per cent of the combined entity shares to its shareholders and retain a 10 per cent stake, which will be placed in a segregated account.
Loh observed on his website that shareholders of Sembmarine will end up with a smaller stake in the combined entity despite Sembmarine contributing the bulk of the assets.
According to announcements on the proposed merger, the combined entity will have S$4.7 billion in net tangible assets (NTA) – comprising S$3.8 billion from Sembmarine and S$0.9 billion from Keppel O&M.
More at https://www.businesstimes.com.sg/co...older-campaigns-against-merger-with-keppel-om
