Singapore’s Keppel O&M and Sembcorp Marine ink definitive merger deal

Singapore’s Keppel Corp said its unit Keppel Offshore & Marine and compatriot Sembcorp Marine have signed a definitive merger deal. The deal would create a “premier global player” focusing on offshore renewables, new energy and cleaner solutions in the offshore and marine sector.

This agreement follows a memorandum of understanding the firms revealed in June last year.

Keppel said in a statement on Wednesday the combined entity would be “well-positioned” to capture opportunities arising from decarbonization in the oil and gas sector and from the global energy transition towards renewables, particularly in the areas of offshore wind, and new energy sources such as hydrogen and ammonia.

The proposed combination involves the establishment of a new holding company which will combine the businesses of Keppel O&M and Sembcorp Marine via separate schemes of arrangement.

$6.83 billion in value for Keppel

Also, the proposed deal and legacy rigs sale, estimated on a pro forma basis, would allow Keppel to realize about S$9.42 billion ($6.83 billion) in value, it said.

This includes S$4.87 billion from Keppel O&M’s combination with Sembmarine, S$500 million in cash, and S$4.05 billion from the sale of Keppel O&M’s legacy rigs and associated receivables to Asset Co, it said.

Keppel said it would receive equity shares representing a 56 percent equity interest in the combined business. After that, it would distribute to its shareholders 46 percent of the equity shares in the combined entity.

Keppel O&M and Sembcorp Marine have both strong presence in the LNG industry and they own a network of shipyards in Singapore and overseas.

Among others, their combined experience includes building all kinds of LNG vessels as well as LNG-powered ships. The duo also repairs and converts LNG vessels.

Keppel O&M also has a stake in Singapore’s first LNG bunkering vessel and in Qatar-based shipyard N-KOM.

The combination remains subject to the approvals of the shareholders of Keppel and Sembcorp Marine at separate extraordinary general meetings scheduled in the fourth quarter of this year.

- Advertisements -

Most Popular

Charif Souki steps down as chairman of Tellurian

US LNG firm Tellurian, the developer of the Driftwood LNG export project in Louisiana, said on Friday that its...

QatarEnergy, ExxonMobil expect first LNG from Golden Pass plant in H1 2025

Energy giants QatarEnergy and ExxonMobil are expecting to start LNG production at their Golden Pass LNG export terminal on...

Dynagas FSRU ready to start Stade job

The 174,000-cbm FSRU Transgas Force, owned by Dynagas, has left Germany's Bremerhaven and will now work as an LNG...

More News Like This

Seatrium wins LNG carrier contracts from BP, Seapeak

Singapore's Seatrium has secured LNG carrier upgrade and repair contracts from Seapeak and BP's shipping unit. The group, previously known...

Singapore’s FueLNG wraps up 100th STS bunkering op

Singapore’s FueLNG, a joint venture consisting of Shell and Seatrium Offshore & Marine, has completed its 100th ship-to-ship (STS)...

Woodside expects to receive first Pluto Train 2 module in Q1 2024

Australian LNG producer Woodside expects to receive the first module from Indonesia at the Pluto Train 2 project site...

Alexandroupolis FSRU conversion nearing completion

Seatrium's yard in Singapore is finalizing the conversion work on the 153,600-cbm FSRU that will serve Gastrade's FSRU-based LNG...