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. 


@Daily_Discussion

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  • BellaFaraday
    ·2022-05-28
    Do you have any idea when they can complete the merger?
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    • duseve
      It’s supposed to happen in Q4 of this year :)
      2022-05-29
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  • ee244c
    ·2022-05-27
    Semb should worth0.15
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    • duseve
      Agree, and even higher in the long run
      2022-05-27
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  • Sonoma
    ·2022-05-26
    Thank you for sharing your view [Smile]
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    • duseve
      THank you! :)
      2022-05-27
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  • EvanHolt
    ·2022-05-28
    The merger is mutually beneficial.
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    • duseve
      Yes definitely
      2022-05-29
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  • DonnaMay
    ·2022-05-28
    So do you think SembMarine is a better bet?
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    • duseve
      Both should benefit from merger. However, there is more room for SembMarine share prices to increase before then, as it is so low now. It has been increasing daily, whereas Keppel has not changed much
      2022-05-29
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  • Orange Peel
    ·2022-05-28
    Thank you for info
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    • duseve
      Welcome! :)
      2022-05-28
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  • Benard
    ·2022-05-27
    是的,谢谢你的分享!
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    • duseve
      You’re welcome! :)
      2022-05-29
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  • 甜甜圈大
    ·2022-05-27
    [财迷] [财迷] [财迷]
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  • CL_Wong
    ·2022-05-29
    Ok
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  • 逆势投资
    ·2022-05-29

    Awesome

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    • duseve
      Thanks! :)
      2022-05-29
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  • changgw
    ·2022-05-28
    up
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  • blu3ugene
    ·2022-05-28
    👍🏻
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  • Tansw
    ·2022-05-28
    yes
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  • ngmkc
    ·2022-05-28
    good
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  • bananaman123
    ·2022-05-28
    [Like]
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  • Raemon
    ·2022-05-27
    Moon
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  • Huatx3
    ·2022-05-27
    🤔
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  • YWTan
    ·2022-05-27
    👍
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  • wilfy
    ·2022-05-27
    nice
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  • ycTeo
    ·2022-05-27
    [Like]
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