However, more time and deliberation will be required to complete the due diligence, says Keppel Corp and SembMarine in a joint statement.
Both parties will also require more time in reaching a mutual agreement on the transaction terms and finalising definitive legal documentation.
They have both committed to continue with their negotiations and work towards having a “definitive agreement” by April 30.
The update comes after analysts indicated that both parties will announce a definitive agreement at the end of March following the signing of the non-binding memorandum of understanding (MOU).
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In addition, Keppel Corp announced that it has made progress on advancing the sale of Keppel O&M’s legacy rigs and associated receivables to a separate company that would be majority owned by external investors.
The transaction to the separate company and the proposed combination will be inter-conditional. They are being pursued concurrently.
Further to the joint statement, both parties have emphasised that there is no guarantee that there may be a definitive agreement on the outcome of the proposed combination in spite of the ongoing discussions.
Shares in Keppel Corporation and SembMarine closed at $6.42 and 9.8 cents respectively on March 31.
