Sembcorp Marine and Keppel Offshore & Marine complete merger

In an announcement on the Singapore Exchange late Tuesday Sembcorp Marine said the proposed combination with Keppel O&M had been closed.

The merger was undertaken by Sembcorp Marine acquiring the entire issued and paid-up capital of Keppel O&M and then issuing 36,848,072,918 KOM Consideration Shares. Following the transaction Keppel shareholders owned 54% of the merged company which trades on SGX as Sembcorp Marine.

The former head of Keppel O&M has been appointed CEO of the newly merged yard company, and a new board of directors appointed, including former Royal Dutch Shell Executive Vice President Mark Gainsborough as Independent Chairman.

The combined group will continue to trade under the Sembcorp Marine name pending any rebranding at a later stage.

The yard group has a combined orderbook of SGD18bn ($13.4bn) in value for delivery between 2023 and 2026.

“While integration of this scale will present challenges, the enlarged group is expected to benefit from greater synergies from the broader geographical footprint, larger operational scale and enhanced capabilities of Singapore’s two leading O&M companies,” Sembcorp Marine said in its annual results released on 27 February.

According to social media posts a town hall for the merged yard group was held on Wednesday morning.

Related:Sembcorp Marine shareholders give Keppel O&M merger the green light