SembCorp to privatize marine unit

SembCorp to privatize marine unit

SINGAPORE: Singapore industrial conglomerate SembCorp Industries Monday said it planned to privatize its marine unit SembCorp Marine.

The offer of S$1.10 (62.5 U.S. cents) a share for its marine division, which has eight shipyards in Singapore, Indonesia, China and Brazil, represents a 23 percent premium on its closing share price on Friday.

Shares in SembCorp Industries (SCI) and SembCorp Marine (SCM) were suspended Monday, pending the late afternoon announcement.

Sembcorp Industries, a government-linked company with tentacles spreading through utilities, environmental engineering, logistics, marine and services, already holds 63.1 percent of the 1.4 billion ordinary shares in its marine company.

It said it intends to make SembCorp Marine a wholly-owned subsidiary and delist it from the Singapore Exchange. -- AFP