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SembCorp Marine- The new Frontier.
ahbui8
Master
16-Jul-2021 23:43     
 
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 Alert Admin 		A recap of what they said during the first rights issue! 

Summary of Benefits to the Company Shareholders
In summary, the Company Shareholders will benefit from the Rights Issue in the following ways:
(i) the Group will strengthen its liquidity position and balance sheet, enabling it to execute its existing projects and compete for high-value projects going forward
(ii) the demerger with SCI will enable the Group to pursue a focused strategy and build further its core engineering and execution capabilities
(iii) the Group will have a strong long-term future as a global leader in innovative engineering solutions for the Offshore and Marine and energy industries, with an increasing focus on clean energy and
(iv) following the Proposed Distribution, the Company will have Temasek as a direct and significant shareholder.
 

Abe2021      ( Date: 16-Jul-2021 22:49) Posted:

Sias queried them for the act of deceit and conceit to carry out such a unjust move. Being the major shareholder, they acted unjustly to the minority. 
Just look at the many who have written their comments here.
Many have called on the name of God. 
It is rather tragic that the nation is moving in this direction. 
Sias is asking is there no other option than to squeeze the minority shareholders who have supported the coy in the previous rights issue 9 months ago.
Nobody will expect such an heidous and crafty scheme. Instead of good visionary to steer the coy after the first rights. Within 9 months carried another rights.
Do the right thing and not rights issue. They will reap what they sow.
All of the sudden, the nation plunged into another huge cluster of c19. We need to have more good righteous man.
Many are shocked by their action and it is horrifying to even conceived such an act. Manfred has said they should be fired. They have to be serious and put their mind in the right place to energise the coy. Something is horribly wrong with the management of SMM. So many years in this sector O& M.
They have let the nation down. It is not cut loss, we are already lost. Without vision how can they compete !
 

Yatsa13      ( Date: 16-Jul-2021 18:05) Posted:

Manfred, God is watching. " So please rectify the mistake, intentionally or unintentionally, to save yourself. When one benefits at the expense of so many poor people, suffering in pain and agony, the joy can only be short-lived. Called it retribution or Karma or Punishment from one' s own sins, it will come back with disastrous consequences. God is watching very closely, the people who are suffering and can' t sleep every night." never underestimate the cry of people, all the victims of hyflux .... God knows
suddenly one big cluster from ktv 53 new locally transmitted c19 cases in singapore. hope these people did not visit the ktv for their celebration.

Sias questions Sembmarine' s latest proposed S$1.5 billion rights issue   
THE Securities Investors Association (Singapore), or Sias, said that Sembcorp Marine' s Sembcorp Marine: S51 -0.84% latest proposed rights issue has caused " great concern" among the company' s minority shareholders and has raised questions.
Noting that other offshore and marine (O& M) players have not gone through this rights issue, Sias questioned the necessity and criticality of this rights issue. 
Sias also questioned the group' s basis for its rights issue price of S$0.08 per share and queried the total rights proceeds and utilisation of the S$1.5 billion raised.
   
Sias noted that the rights issue will represent a significant discount and dilution to minority shareholders, at a 35.7 per cent to the theoretical ex-rights price and a bigger 58.1 per cent discount to the counter' s close at S$0.191 on June 23.

Manfred, you are right -  " Are the CEO not awared that when the share trades ex-right, the price will be adjusted down to 12.44 cents from the market price of 19.1 cents before the announcement of the rights issue."   so lacking in the leadership.  is there no one to steer the company to compete and bring in more contracts ??? 9 solid months after the rights $2.1b.  all they can ever think off, is exploiting the investors who support the company.

Our founding Father, LKY would be rather sad if he is still around. Tragic 🥲


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sutiono
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16-Jul-2021 23:04     
 
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 Alert Admin 		Believe KEP and SM had learned from their past ecperiences , dare not do this again.

weekaykee      ( Date: 16-Jul-2021 21:24) Posted:

It is not winnning contracts mainy because it is not willing to bribe the decision makers unlike the Chinese / Korean yards. 

 

etilatrop      ( Date: 16-Jul-2021 21:11) Posted:

If I were TH, I would only be certain that a taken-over SMM or a merged SMM+KOM would have substantially less costs or profitability if:
(i) I had ensured that SMM could not win orders in the past or
(ii) I had ensured that SMM has continued to incur great costs in the past.

imho, I have often found SMM' s inability to win orders in the past few years very strange. Even for tenders in Brazil where it is supposed to have presence through EJA, even for green solar projects near SG in Vietnam, even for orders that SMM has significant advantage in experience and technology SMM still fails to bag orders. Very very very strange....What is also strange is that a normal company usually cuts costs to survive, but SMM seems to go the opposite direction.....strange and stranger....But the largest SH seems perfectly fine with this management and its way of doing things, so it is a waste of time talking about it.

Analysts keep talking about economies of scale post merger. This is a fallacy. Economies of scale come with higher production levels, NOT higher (idle) capacity. Hence, cost savings post-merger is wishful thinking currently.

 
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Abe2021
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16-Jul-2021 23:01     
 
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 Alert Admin 		Is bribery the only way to win contracts! Sias queried is rights issue the only option ? 
We have to put our act together and do the right thing
Look for credible people 

 

weekaykee      ( Date: 16-Jul-2021 21:24) Posted:

It is not winnning contracts mainy because it is not willing to bribe the decision makers unlike the Chinese / Korean yards. 

 

etilatrop      ( Date: 16-Jul-2021 21:11) Posted:

If I were TH, I would only be certain that a taken-over SMM or a merged SMM+KOM would have substantially less costs or profitability if:
(i) I had ensured that SMM could not win orders in the past or
(ii) I had ensured that SMM has continued to incur great costs in the past.

imho, I have often found SMM' s inability to win orders in the past few years very strange. Even for tenders in Brazil where it is supposed to have presence through EJA, even for green solar projects near SG in Vietnam, even for orders that SMM has significant advantage in experience and technology SMM still fails to bag orders. Very very very strange....What is also strange is that a normal company usually cuts costs to survive, but SMM seems to go the opposite direction.....strange and stranger....But the largest SH seems perfectly fine with this management and its way of doing things, so it is a waste of time talking about it.

Analysts keep talking about economies of scale post merger. This is a fallacy. Economies of scale come with higher production levels, NOT higher (idle) capacity. Hence, cost savings post-merger is wishful thinking currently.

 
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Abe2021
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16-Jul-2021 22:49     
 
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 Alert Admin 		Sias queried them for the act of deceit and conceit to carry out such a unjust move. Being the major shareholder, they acted unjustly to the minority. 
Just look at the many who have written their comments here.
Many have called on the name of God. 
It is rather tragic that the nation is moving in this direction. 
Sias is asking is there no other option than to squeeze the minority shareholders who have supported the coy in the previous rights issue 9 months ago.
Nobody will expect such an heidous and crafty scheme. Instead of good visionary to steer the coy after the first rights. Within 9 months carried another rights.
Do the right thing and not rights issue. They will reap what they sow.
All of the sudden, the nation plunged into another huge cluster of c19. We need to have more good righteous man.
Many are shocked by their action and it is horrifying to even conceived such an act. Manfred has said they should be fired. They have to be serious and put their mind in the right place to energise the coy. Something is horribly wrong with the management of SMM. So many years in this sector O& M.
They have let the nation down. It is not cut loss, we are already lost. Without vision how can they compete !
 

Yatsa13      ( Date: 16-Jul-2021 18:05) Posted:

Manfred, God is watching. " So please rectify the mistake, intentionally or unintentionally, to save yourself. When one benefits at the expense of so many poor people, suffering in pain and agony, the joy can only be short-lived. Called it retribution or Karma or Punishment from one' s own sins, it will come back with disastrous consequences. God is watching very closely, the people who are suffering and can' t sleep every night." never underestimate the cry of people, all the victims of hyflux .... God knows
suddenly one big cluster from ktv 53 new locally transmitted c19 cases in singapore. hope these people did not visit the ktv for their celebration.

Sias questions Sembmarine' s latest proposed S$1.5 billion rights issue   
THE Securities Investors Association (Singapore), or Sias, said that Sembcorp Marine' s Sembcorp Marine: S51 -0.84% latest proposed rights issue has caused " great concern" among the company' s minority shareholders and has raised questions.
Noting that other offshore and marine (O& M) players have not gone through this rights issue, Sias questioned the necessity and criticality of this rights issue. 
Sias also questioned the group' s basis for its rights issue price of S$0.08 per share and queried the total rights proceeds and utilisation of the S$1.5 billion raised.
   
Sias noted that the rights issue will represent a significant discount and dilution to minority shareholders, at a 35.7 per cent to the theoretical ex-rights price and a bigger 58.1 per cent discount to the counter' s close at S$0.191 on June 23.

Manfred, you are right -  " Are the CEO not awared that when the share trades ex-right, the price will be adjusted down to 12.44 cents from the market price of 19.1 cents before the announcement of the rights issue."   so lacking in the leadership.  is there no one to steer the company to compete and bring in more contracts ??? 9 solid months after the rights $2.1b.  all they can ever think off, is exploiting the investors who support the company.

Our founding Father, LKY would be rather sad if he is still around. Tragic 🥲


MANFREDTMK      ( Date: 16-Jul-2021 15:57) Posted:

As SIAS pointed out correctly, why Price the rights share at a ridiculously low price of 8 cents, a whopping 60% discount to the weighted average price of 20 cents before the announcement of the Rights issue. PLEASE EXPLAIN WHY? Don't Dodge this Question. Are the CEO not awared that when the share trades ex-right, the price will be adjusted down to 12.44 cents from the market price of 19.1 cents before the announcement of the rights issue. Naturally, this will cause the share to plunge more than 40% within a week.This is the Main Factor that will continue to haunt the share until it goes ex-right. Save all the good news till then, it's not going to work at all until the Rights issue is over. To exemplify, even a company that is flagged by an auditor about its Going Concern only dropped around 20% at most. It's the investment banking officer who set the Rights Price wrongly. He could have set the Rights issue to 1.5 Rights shares at 16 cents per share, for every 2 existing shares you owned. Yet Sembcorp Marine still raise the same amount of money, $1.5b, but in this case, the ex-right price will be 17.78 based on 19.1 cents before the announcement. If based on 20 cents, one day earlier before some insiders got hold of the new and sell first, the ex-right price will be 18.28 cents. Then the market price today will not need to fall below 17.78 or 18.28 respectively given that foreign funds that are not registered in Singapore cannot subscribe to the Rights issue and hence have to dump at big losses instead of waiting for the share to trade ex-right. That's because the price will be adjusted down to 12.44 cents by then. The investment banking officer screwed up big time, wiping almost $1,000 millions or $1 billion from the market, burning the hard earned, blood and sweat Savings of minority shareholders. Not to mention the psychological stress they have to go through over the next few months. So please rectify the mistake, intentionally or unintentionally, to save yourself. When one benefits at the expense of so many poor people, suffering in pain and agony, the joy can only be short-lived. Called it retribution or Karma or Punishment from one's own sins, it will come back with disastrous consequences. God is watching very closely, the people who are suffering and can't sleep every night
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weekaykee
Master
16-Jul-2021 21:24     
 
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 Alert Admin 		It is not winnning contracts mainy because it is not willing to bribe the decision makers unlike the Chinese / Korean yards. 

 

etilatrop      ( Date: 16-Jul-2021 21:11) Posted:

If I were TH, I would only be certain that a taken-over SMM or a merged SMM+KOM would have substantially less costs or profitability if:
(i) I had ensured that SMM could not win orders in the past or
(ii) I had ensured that SMM has continued to incur great costs in the past.

imho, I have often found SMM' s inability to win orders in the past few years very strange. Even for tenders in Brazil where it is supposed to have presence through EJA, even for green solar projects near SG in Vietnam, even for orders that SMM has significant advantage in experience and technology SMM still fails to bag orders. Very very very strange....What is also strange is that a normal company usually cuts costs to survive, but SMM seems to go the opposite direction.....strange and stranger....But the largest SH seems perfectly fine with this management and its way of doing things, so it is a waste of time talking about it.

Analysts keep talking about economies of scale post merger. This is a fallacy. Economies of scale come with higher production levels, NOT higher (idle) capacity. Hence, cost savings post-merger is wishful thinking currently.

 

weekaykee      ( Date: 16-Jul-2021 19:38) Posted:

Miracalously, costs will go down substantially once TH takes over and merges it with KOM. 

Most of the workers to be retrenched will be foreigner
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etilatrop
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16-Jul-2021 21:11     
 
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 Alert Admin 		If I were TH, I would only be certain that a taken-over SMM or a merged SMM+KOM would have substantially less costs or profitability if:
(i) I had ensured that SMM could not win orders in the past or
(ii) I had ensured that SMM has continued to incur great costs in the past.

imho, I have often found SMM' s inability to win orders in the past few years very strange. Even for tenders in Brazil where it is supposed to have presence through EJA, even for green solar projects near SG in Vietnam, even for orders that SMM has significant advantage in experience and technology SMM still fails to bag orders. Very very very strange....What is also strange is that a normal company usually cuts costs to survive, but SMM seems to go the opposite direction.....strange and stranger....But the largest SH seems perfectly fine with this management and its way of doing things, so it is a waste of time talking about it.

Analysts keep talking about economies of scale post merger. This is a fallacy. Economies of scale come with higher production levels, NOT higher (idle) capacity. Hence, cost savings post-merger is wishful thinking currently.

 

weekaykee      ( Date: 16-Jul-2021 19:38) Posted:

Miracalously, costs will go down substantially once TH takes over and merges it with KOM. 

Most of the workers to be retrenched will be foreigners

etilatrop      ( Date: 16-Jul-2021 18:13) Posted:

It is possible that TH wants to takeover SMM at dirt cheap prices at the expense of other SHs. However, the assumption would be:

i) TH is sure that SMM or SMM+KOM is able to compete against Chinese and Korean yards
ii) TH is willing to take loses of possibly about $1 billion annually till unknown point in time
iii) TH is willing to burden itself with the responsility of restructuring which likely involves the retrenchment of a large number of marine workers and discussions with the unions.
iv) TH is certain of profitability in the short term, but workers in a ' nationalized' entity are often not motivated or competitive, and are just protecting their rice bowl only (well which seems to be the case in SMM now actually)
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sutiono
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16-Jul-2021 21:05     
 
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 Alert Admin 		SIAS must wayang to say something , this is expected. But only talk , nothing will change .
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Abe2021
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16-Jul-2021 19:57     
 
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 Alert Admin
What are you talking about punters who refused to cut loss. No right mind will carry out another rights issue in less than 9 months.

Sias queried them,
" On June 24 this year, Sembmarine announced that it was planning an additional fully committed, renounceable of up to 18.83 billion new shares on the basis of three new shares for every two existing shares held, at S$0.08 per share.
   
Noting that other offshore and marine (O& M) players have not gone through this rights issue, Sias questioned the necessity and criticality of this rights issue."


uiop1223      ( Date: 16-Jul-2021 19:01) Posted:

T has no obligation to protect punters who refused to cut loss. It needs to take care of the economy and jobs. In all likelihood, the 8cents probably approved by someone 😇

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weekaykee
Master
16-Jul-2021 19:38     
 
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 Alert Admin 		Miracalously, costs will go down substantially once TH takes over and merges it with KOM. 

Most of the workers to be retrenched will be foreigners

etilatrop      ( Date: 16-Jul-2021 18:13) Posted:

It is possible that TH wants to takeover SMM at dirt cheap prices at the expense of other SHs. However, the assumption would be:

i) TH is sure that SMM or SMM+KOM is able to compete against Chinese and Korean yards
ii) TH is willing to take loses of possibly about $1 billion annually till unknown point in time
iii) TH is willing to burden itself with the responsility of restructuring which likely involves the retrenchment of a large number of marine workers and discussions with the unions.
iv) TH is certain of profitability in the short term, but workers in a ' nationalized' entity are often not motivated or competitive, and are just protecting their rice bowl only (well which seems to be the case in SMM now actually).

weekaykee      ( Date: 16-Jul-2021 17:13) Posted:

The timing and pricing of the rights may make perfect sense to TH if their intention is to takeover SMM cheaply and as quickly as possible, before it is beyond being salvaged
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uiop1223
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16-Jul-2021 19:01     
 
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 Alert Admin 		T has no obligation to protect punters who refused to cut loss. It needs to take care of the economy and jobs. In all likelihood, the 8cents probably approved by someone 😇
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Abe2021
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16-Jul-2021 18:58     
 
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 Alert Admin 		It is clear. Look at the comments from all the people.
As you have rightly said " The timing and pricing of the rights is pure idiocy, and the planners in SMM or TH should be fired."
Hope those leaders who are still thinking straight, to step forward and rectify the issue. Whoever involved in the merger decision are mired in deceit and not thinking in the interest of the coy.  We need visionary to lead the coy. 
Many have quoted NOL that was sold because someone think it is hopeless. After 1 year, NOL turned around and become profitable.   Put your heart in the right place instead of filling your mind with deceits.
We should be easing covid measure for our National Day instead the healthcare are now working tireless to trace the latest KTV cluster.
When you are given the power and you rubbished it. Don' t think you can sleep in peace. 
I am glad Sias raised their concerns. They have broken their silence and many thank them for doing so.
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etilatrop
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16-Jul-2021 18:13     
 
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 Alert Admin 		It is possible that TH wants to takeover SMM at dirt cheap prices at the expense of other SHs. However, the assumption would be:

i) TH is sure that SMM or SMM+KOM is able to compete against Chinese and Korean yards
ii) TH is willing to take loses of possibly about $1 billion annually till unknown point in time
iii) TH is willing to burden itself with the responsility of restructuring which likely involves the retrenchment of a large number of marine workers and discussions with the unions.
iv) TH is certain of profitability in the short term, but workers in a ' nationalized' entity are often not motivated or competitive, and are just protecting their rice bowl only (well which seems to be the case in SMM now actually).

weekaykee      ( Date: 16-Jul-2021 17:13) Posted:

The timing and pricing of the rights may make perfect sense to TH if their intention is to takeover SMM cheaply and as quickly as possible, before it is beyond being salvaged.

etilatrop      ( Date: 16-Jul-2021 16:56) Posted:

What has largely escaped discussion so far is, if and when a takeover by TH occurs, it would be akin to nationalization of SMM. This should attract objections from international regulators. Beijing has the weight to merge yards easily, but South Korea can just offer unfair subsidies to support its yards.  The latter' s proposed merger of KSOE and DSME has met with objections and hurdles, especially from EU. This means that even if TH wants to push SMM to pay KC for toxic assets and have a merger, it is not easy, and not likely before the sealing of the merger of KSOE and DSME.  A takeover is not easy, and a merger all the much harder.

Furthermore, regardless of a TH takeover or a merger, it is STILL unlikely for SG yards to become profitable or get more orders, unless:
i) There are enough scraps to scanvenge after Korean and Chinese yards fill their order books.
ii) TH or banks offer credit or favourable payment terms to potential customers
iii) TH or local subsidize local yards like Korea does.

None of the above is likely to happen. Most likely SMM would be stuck in status quo and continue to bleed indefinitely. The timing and pricing of the rights is pure idiocy, and the planners in SMM or TH should be fired. 
 


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Yatsa13
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16-Jul-2021 18:05     
 
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 Alert Admin 		Manfred, God is watching. " So please rectify the mistake, intentionally or unintentionally, to save yourself. When one benefits at the expense of so many poor people, suffering in pain and agony, the joy can only be short-lived. Called it retribution or Karma or Punishment from one' s own sins, it will come back with disastrous consequences. God is watching very closely, the people who are suffering and can' t sleep every night." never underestimate the cry of people, all the victims of hyflux .... God knows
suddenly one big cluster from ktv 53 new locally transmitted c19 cases in singapore. hope these people did not visit the ktv for their celebration.

Sias questions Sembmarine' s latest proposed S$1.5 billion rights issue   
THE Securities Investors Association (Singapore), or Sias, said that Sembcorp Marine' s Sembcorp Marine: S51 -0.84% latest proposed rights issue has caused " great concern" among the company' s minority shareholders and has raised questions.
Noting that other offshore and marine (O& M) players have not gone through this rights issue, Sias questioned the necessity and criticality of this rights issue. 
Sias also questioned the group' s basis for its rights issue price of S$0.08 per share and queried the total rights proceeds and utilisation of the S$1.5 billion raised.
   
Sias noted that the rights issue will represent a significant discount and dilution to minority shareholders, at a 35.7 per cent to the theoretical ex-rights price and a bigger 58.1 per cent discount to the counter' s close at S$0.191 on June 23.

Manfred, you are right -  " Are the CEO not awared that when the share trades ex-right, the price will be adjusted down to 12.44 cents from the market price of 19.1 cents before the announcement of the rights issue."   so lacking in the leadership.  is there no one to steer the company to compete and bring in more contracts ??? 9 solid months after the rights $2.1b.  all they can ever think off, is exploiting the investors who support the company.

Our founding Father, LKY would be rather sad if he is still around. Tragic 🥲


MANFREDTMK      ( Date: 16-Jul-2021 15:57) Posted:

As SIAS pointed out correctly, why Price the rights share at a ridiculously low price of 8 cents, a whopping 60% discount to the weighted average price of 20 cents before the announcement of the Rights issue. PLEASE EXPLAIN WHY? Don't Dodge this Question. Are the CEO not awared that when the share trades ex-right, the price will be adjusted down to 12.44 cents from the market price of 19.1 cents before the announcement of the rights issue. Naturally, this will cause the share to plunge more than 40% within a week.This is the Main Factor that will continue to haunt the share until it goes ex-right. Save all the good news till then, it's not going to work at all until the Rights issue is over. To exemplify, even a company that is flagged by an auditor about its Going Concern only dropped around 20% at most. It's the investment banking officer who set the Rights Price wrongly. He could have set the Rights issue to 1.5 Rights shares at 16 cents per share, for every 2 existing shares you owned. Yet Sembcorp Marine still raise the same amount of money, $1.5b, but in this case, the ex-right price will be 17.78 based on 19.1 cents before the announcement. If based on 20 cents, one day earlier before some insiders got hold of the new and sell first, the ex-right price will be 18.28 cents. Then the market price today will not need to fall below 17.78 or 18.28 respectively given that foreign funds that are not registered in Singapore cannot subscribe to the Rights issue and hence have to dump at big losses instead of waiting for the share to trade ex-right. That's because the price will be adjusted down to 12.44 cents by then. The investment banking officer screwed up big time, wiping almost $1,000 millions or $1 billion from the market, burning the hard earned, blood and sweat Savings of minority shareholders. Not to mention the psychological stress they have to go through over the next few months. So please rectify the mistake, intentionally or unintentionally, to save yourself. When one benefits at the expense of so many poor people, suffering in pain and agony, the joy can only be short-lived. Called it retribution or Karma or Punishment from one's own sins, it will come back with disastrous consequences. God is watching very closely, the people who are suffering and can't sleep every night.

Joelton      ( Date: 16-Jul-2021 09:42) Posted:

Sias questions Sembmarine' s latest proposed S$1.5 billion rights issue
 
THE Securities Investors Association (Singapore), or Sias, said that Sembcorp Marine' s Sembcorp Marine: S51 -0.84% latest proposed rights issue has caused " great concern" among the company' s minority shareholders and has raised questions.
 
In a press statement released on Thursday, Sias said that the proposed rights issue came as a surprise to Sembmarine' s shareholders since the group' s CEO, Wong Weng Sun, had earlier expressed optimism in his H2 FY2020 results briefing in February earlier this year. Then, he said that the S$2.1 billion rights issuance in September 2020 had strengthened the company' s liquidity position and balance sheet.
 
On June 24 this year, Sembmarine announced that it was planning an additional fully committed, renounceable of up to 18.83 billion new shares on the basis of three new shares for every two existing shares held, at S$0.08 per share.
 
Noting that other offshore and marine (O& M) players have not gone through this rights issue, Sias questioned the necessity and criticality of this rights issue.
 
Sias also questioned the group' s basis for its rights issue price of S$0.08 per share and queried the total rights proceeds and utilisation of the S$1.5 billion raised.
 
Sias noted that the rights issue will represent a significant discount and dilution to minority shareholders, at a 35.7 per cent to the theoretical ex-rights price and a bigger 58.1 per cent discount to the counter' s close at S$0.191 on June 23.
 
Furthermore, Sias cited the group' s management as saying that the requirement for S$1.5 billion was " predicated on generally conservative assumptions" and asked if and under what circumstances would further fund-raising exercises be held after 2022. Sias also asked for the group' s assumption for oil prices up to end-2022.
 
Moving on to the group' s strategy and operations, the association said that the rights issuance could allow Sembmarine to fulfil existing commitments and win new projects, augment technological capabilities and maintain the group' s competitive edge and accelerate its pivot into high-growth renewable and clean energy segments.
 
Sias asked if it was accurate to suggest that the strengthening of Sembmarine' s financials through the rights issue is of the utmost importance and urgency at this juncture. The association further questioned when the group would actualise its reported order book size of S$1.89 billion to cash flows.
 
The association then called into question the need for the recently announced rights issue since Sembmarine had earlier disclosed in its financial statements for the year ended on March 31 this year that S$0.2 billion of the S$0.6 billion net proceeds from the earlier S$2.1 billion rights issue had already been used for working capital.
 
" It can thus be reasoned that the Group' s liquidity position and balance sheet would have been strengthened post the 2020 rights issue. Furthermore, one may expect the performance to improve on the back of improving economic fundamentals, and the successful cost-cutting measures undertaken by Sembmarine," Sias said.
 
As such, Sias asked for an update on Sembmarine' s financial position and operating conditions. The association also sought to understand the risks and potential risks that the group may face that may have given cause for the proposed rights issuance.
 
With Sembmarine' s net debt to equity ratio at 0.74 times, Sias questioned if Sembmarine had sought to raise funds through other means like it had done for the S$500 million the group previously raised through sustainability-linked financial facilities.
 
In relation to the protection of minority shareholders, Sias cited the tepid response to the earlier S$2.1 billion rights issue noting that only 18 per cent of the total rights issue had been taken up by minority shareholders.
 
The association then questioned if the group had evaluated why the response from them was as such, and if anything would be done differently with the latest proposed rights issue. Also, the association asked if the company would be taking any steps to protect the rights of minority shareholders.
 
While Sias understood that Sembmarine has clarified that net proceeds from the rights issue will not be used to fund the potential combination of Keppel O& M and Sembmarine, it further questioned if there would be any consequences if the latest rights issue were not approved by shareholders, and if this would have any impact on the potential merger of the two companies.
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Chagatai
Veteran
16-Jul-2021 17:19     
 
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 Alert Admin 		Yes Sir that?s exactally how I feel. Enough already of the trauma enough of the complicated financial surgery. Just end it clean swift and fairly
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Calmroom
Master
16-Jul-2021 17:15     
 
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 Alert Admin 		Haha! If sink to 10c + then I also feel no need
waste time with all this wayang opera show.

Just call for trading halt to announce voluntary offer
short and sweet save time save trouble save cost.  yes

Chagatai      ( Date: 16-Jul-2021 17:02) Posted:

actually if drop to 11c or below there will be no point doing rights. After rights it will drop further below 5c anyway just do mandatory offer at 25c or above since no agreement has been finalised. Like this make sense
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weekaykee
Master
16-Jul-2021 17:15     
 
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 Alert Admin 		I don' t think SIAs has a history of getting decisons made by companies overturned. All it can do is raise awareness. 
SMM will give a lip service reply. 

lailai      ( Date: 16-Jul-2021 16:52) Posted:

Think SIAS words though logical but don carry much weight. Don think SCM will even reply.
Shd hv come from Prof M, and then SGX may raised the questions, and SCM hv to reply. 
Think now too late, after falling from 19.1c to current 11.5c in a matter of 3 weeks. Just opinion only.frown
 

Joelton      ( Date: 16-Jul-2021 09:42) Posted:

Sias questions Sembmarine' s latest proposed S$1.5 billion rights issue
 
THE Securities Investors Association (Singapore), or Sias, said that Sembcorp Marine' s Sembcorp Marine: S51 -0.84% latest proposed rights issue has caused " great concern" among the company' s minority shareholders and has raised questions.
 
In a press statement released on Thursday, Sias said that the proposed rights issue came as a surprise to Sembmarine' s shareholders since the group' s CEO, Wong Weng Sun, had earlier expressed optimism in his H2 FY2020 results briefing in February earlier this year. Then, he said that the S$2.1 billion rights issuance in September 2020 had strengthened the company' s liquidity position and balance sheet.
 
On June 24 this year, Sembmarine announced that it was planning an additional fully committed, renounceable of up to 18.83 billion new shares on the basis of three new shares for every two existing shares held, at S$0.08 per share.
 
Noting that other offshore and marine (O& M) players have not gone through this rights issue, Sias questioned the necessity and criticality of this rights issue.
 
Sias also questioned the group' s basis for its rights issue price of S$0.08 per share and queried the total rights proceeds and utilisation of the S$1.5 billion raised.
 
Sias noted that the rights issue will represent a significant discount and dilution to minority shareholders, at a 35.7 per cent to the theoretical ex-rights price and a bigger 58.1 per cent discount to the counter' s close at S$0.191 on June 23.
 
Furthermore, Sias cited the group' s management as saying that the requirement for S$1.5 billion was " predicated on generally conservative assumptions" and asked if and under what circumstances would further fund-raising exercises be held after 2022. Sias also asked for the group' s assumption for oil prices up to end-2022.
 
Moving on to the group' s strategy and operations, the association said that the rights issuance could allow Sembmarine to fulfil existing commitments and win new projects, augment technological capabilities and maintain the group' s competitive edge and accelerate its pivot into high-growth renewable and clean energy segments.
 
Sias asked if it was accurate to suggest that the strengthening of Sembmarine' s financials through the rights issue is of the utmost importance and urgency at this juncture. The association further questioned when the group would actualise its reported order book size of S$1.89 billion to cash flows.
 
The association then called into question the need for the recently announced rights issue since Sembmarine had earlier disclosed in its financial statements for the year ended on March 31 this year that S$0.2 billion of the S$0.6 billion net proceeds from the earlier S$2.1 billion rights issue had already been used for working capital.
 
" It can thus be reasoned that the Group' s liquidity position and balance sheet would have been strengthened post the 2020 rights issue. Furthermore, one may expect the performance to improve on the back of improving economic fundamentals, and the successful cost-cutting measures undertaken by Sembmarine," Sias said.
 
As such, Sias asked for an update on Sembmarine' s financial position and operating conditions. The association also sought to understand the risks and potential risks that the group may face that may have given cause for the proposed rights issuance.
 
With Sembmarine' s net debt to equity ratio at 0.74 times, Sias questioned if Sembmarine had sought to raise funds through other means like it had done for the S$500 million the group previously raised through sustainability-linked financial facilities.
 
In relation to the protection of minority shareholders, Sias cited the tepid response to the earlier S$2.1 billion rights issue noting that only 18 per cent of the total rights issue had been taken up by minority shareholders.
 
The association then questioned if the group had evaluated why the response from them was as such, and if anything would be done differently with the latest proposed rights issue. Also, the association asked if the company would be taking any steps to protect the rights of minority shareholders.
 
While Sias understood that Sembmarine has clarified that net proceeds from the rights issue will not be used to fund the potential combination of Keppel O& M and Sembmarine, it further questioned if there would be any consequences if the latest rights issue were not approved by shareholders, and if this would have any impact on the potential merger of the two companies.
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weekaykee
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16-Jul-2021 17:13     
 
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 Alert Admin 		The timing and pricing of the rights may make perfect sense to TH if their intention is to takeover SMM cheaply and as quickly as possible, before it is beyond being salvaged.

etilatrop      ( Date: 16-Jul-2021 16:56) Posted:

What has largely escaped discussion so far is, if and when a takeover by TH occurs, it would be akin to nationalization of SMM. This should attract objections from international regulators. Beijing has the weight to merge yards easily, but South Korea can just offer unfair subsidies to support its yards.  The latter' s proposed merger of KSOE and DSME has met with objections and hurdles, especially from EU. This means that even if TH wants to push SMM to pay KC for toxic assets and have a merger, it is not easy, and not likely before the sealing of the merger of KSOE and DSME.  A takeover is not easy, and a merger all the much harder.

Furthermore, regardless of a TH takeover or a merger, it is STILL unlikely for SG yards to become profitable or get more orders, unless:
i) There are enough scraps to scanvenge after Korean and Chinese yards fill their order books.
ii) TH or banks offer credit or favourable payment terms to potential customers
iii) TH or local subsidize local yards like Korea does.

None of the above is likely to happen. Most likely SMM would be stuck in status quo and continue to bleed indefinitely. The timing and pricing of the rights is pure idiocy, and the planners in SMM or TH should be fired. 
 

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Chagatai
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16-Jul-2021 17:10     
 
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 Alert Admin 		Ya Problem is also Sembcorpse got world class venues and yards but nobody is coming to the party so month but month losing out and shareholders like me now on brink of bankruptcy losing all the sacrifice
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weekaykee
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16-Jul-2021 17:08     
 
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 Alert Admin 		Unlikely it will drop to below 5 cts in the next 6 months and neither is a 25 cts offer possible.

Chagatai      ( Date: 16-Jul-2021 17:02) Posted:

actually if drop to 11c or below there will be no point doing rights. After rights it will drop further below 5c anyway just do mandatory offer at 25c or above since no agreement has been finalised. Like this make sense
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Starship
Supreme
16-Jul-2021 17:07     
 
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 Alert Admin

mkaung2000      ( Date: 16-Jul-2021 16:10) Posted:

This one really one way ticket!
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