Analysts were previously positive about the merger following the group's announcement of its EGM. In the same announcement, the group revealed its updates for its new management as well. To HSBC Global Research analyst Rahul Bhatia, the merger is the "next catalyst" for SembMarine while PhillipCapital's Paul Chew noted the clarity will remove any overhang on Keppel's share price.
On June 24, 2021, Keppel Corporation and SembMarine entered into a non-binding memorandum of understanding (MOU) to combine Keppel Corp’s offshore & marine (O&M) arm and SembMarine.
Both companies entered into definitive agreements for the proposed combination on April 27, 2022.
The completion of the acquisition is slated to take place on or before Feb 28.
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As at 3.02pm, shares in SembMarine are trading at 13.5 cents after its trading halt on the morning of Feb 16. Shares in Keppel Corp are trading 6 cents higher or 0.85% up at $7.14.
