SembCorp may offer shares for Jurong

SembCorp may offer shares for Jurong

SINGAPORE (Reuter): SembCorp Ltd said yesterday it was
considering offering new SembCorp shares and cash as an
alternative to just cash in its takeover offer for Jurong
Shipyard.

In a statement issued by SembCorp's financial adviser,
Standard Chartered Merchant Bank Asia Ltd, SembCorp said it will
be seeking approval from shareholders for the share cum cash
alternative.

It said: "Shareholders should note the share alternative is
only under consideration and the directors may or may not proceed
with it."

SembCorp had earlier signed an agreement with Jurong to merge
the shipyard operations of the two companies.

Under the deal, SembCorp will inject its shipyard assets into
Jurong, which will in turn pay for them by issuing new Jurong
shares at Singapore $6.80 each.

The merger will result in SembCorp increasing its stake in
Jurong to 38.6 percent from about 23 percent currently.
Under Singapore takeover laws, SembCorp will have to make a
general offer for all outstanding Jurong shares at S$6.80 a share
in cash.