Sembcorp Industries - RHB Invest 2020-06-09: Future Focus: Energy & Urban; Keep BUY

SEMBCORP INDUSTRIES LTD (SGX:U96) | SGinvestors.io SEMBCORP INDUSTRIES LTD (SGX:U96)

Sembcorp Industries - Future Focus: Energy And Urban; Keep Buy






5-for-1 Sembcorp Marine rights issue.

  • Sembcorp Marine will issue rights at SGD0.20/rights share, representing a 31% discount to the theoretical ex-rights price based on a 5- day volume weighted average price of SGD0.74. Sembcorp Industries has undertaken to subscribe for up to SGD1.5bn of rights by setting off the SGD1.5bn subordinated loan previously extended to Sembcorp Marine.
  • Temasek has agreed to sub-underwrite the remaining SGD0.6bn.


De-merger of Sembcorp Marine and Sembcorp Industries via distribution in specie.



Sembcorp Marine shareholders’ approvals are required:

  • An ordinary resolution to approve the rights issue and a whitewash resolution in respect of the proposed distribution, as this may result in Temasek holding > 30% of Sembcorp Marine’s shares. Sembcorp Industries’s shareholders will separately need to approve the resolution for proposed distribution. All these resolutions are inter-conditional.


We cut FY20F-22F earnings.



Our new Target Price of SGD2.11 factors in the proposal.






Leng Seng Choon CFA RHB Securities Research | https://www.rhbinvest.com.sg/ 2020-06-09
SGX Stock Analyst Report BUY MAINTAIN BUY 2.11 UP 2.000



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