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.