SembMarine & Keppel Merger
What a ride it has been for holders of $SEMBCORP MARINE LTD(S51.SI)$in the past year. Following steep declines in share price in2020, SembMarine's holders awaited news regarding an anticipated merger of SambMarine with $KEPPEL CORPORATION LIMITED(BN4.SI)$.
Once the merger was confirmed, SembMarine's prices started steadily climbing, from around $0.08 per share to a high of $0.13 in April 2022, when details of the merger were finalised. The merger is expected to help the new entity, Bayberry, gain a competitive advantage in the energy and oil space, and increase earnings significantly.
But SembMarine's prices fell again after details of the merger were announced. Why? It seemed that holders of Keppel would have more to gain from the merger, and receive larger shares In Bayberry, than SembMarine's holders.
However, this is to be expected when you compare the prices of Keppel (about $6.80 now) with that of SembMarine's (about $0.11 now). And since the dip in SembMarine's price at the end of April 2022, it has been steadily regaining its share price. It also remainsone of the top traded stocks every day, evenas the US and SG markets take a beating.
Ultimately, I believe that both companies stand to benefit from the upcoming merger. But with a considerably lower price point for SembMarine, this could be a much more attractive stock for smaller retail investors.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Awesome