$SEMBCORP MARINE LTD(S51.SI)$Has scrapped a deal to merge with Keppel Corp's (KPLM.SI)offshore and marine unit and form new company, in favour of directly buying the unit for S$4.50 billion ($3.19 billion), the Temasek-backed oil rig builder said on 27 Oct 22 (Thursday).

The new structure also lowers the value of Keppel's unit by S$378 million from the S$4.87 billion valuation it got according to the terms of the previous S$8.7 billion mergeragreement struck in April2022, Sembmarine said.

This deal gives Sembmarine's shareholders a bigger stake –– of 46% stake, compared with 44% in the previous deal –– in the combined firm and shortens the time required to complete the deal by up to two months, Sembmarine said.

The deal is now expected to close by the end of the year.

"Amidst these volatile and uncertain times, the parties believe that it is critical for the proposed combination to be completed as soon as possible so that the benefits of an enlarged entity can be realised sooner," Sembmarine said.

The stock price has been trending upward this morning due to the good news and now it has become my only stock that has turned green. Hopefully the good news will continue to bring the stock price go up to the moon soon. 🚀🚀🚀

Source : Reuters