Offer by Temasek’s Startree for SembMarine becomes unconditional

Singapore five-dollar note Photo by Leslie Shaffer

The offer by Temasek Holdings‘ subsidiary Startree Investments to acquire all of the shares of Sembcorp Marine it doesn’t already own has become unconditional after receiving valid acceptances of the offer representing around 3.98 percent of the rigbuilder’s shares.

That brought Startree’s total stake in SembMarine, based on shares it owns, controls or agreed to acquire, to 50.594 percent, Morgan Stanley Asia (Singapore) said in a filing to SGX late Monday on behalf of Startree.

The offer was conditional on receiving valid acceptances taking the Temasek subsidiary’s shareholding to exceed 50 percent.

Startree has previously said it didn’t plan to extend the offer, and that was reiterated in the filing Monday. Shareholders who want to accept the offer must do so by close of business on 3 November, the filing said.

In September, Startree Investments made a mandatory general offer (MGO) to acquire all of Sembcorp Marine’s shares it doesn’t already own for S$0.08 each in cash.

Startree was required to make the offer as its stake in SembMarine increased to 46.6 percent from 42.6 percent after the rigbuilder completed a S$1.5 billion renounceable rights issue at S$0.08 a share. The increased shareholding triggered an obligation to make a general offer under Singapore’s Code on Take-overs and Mergers. The mandatory general offer was required to match to rights issue price at a minimum.

Shares of SembMarine ended Monday at S$0.079.

Temasek is Singapore’s state-owned investment company.