There are at least 3 options you can consider. As part of the issue, S$1.5 billion is made up of a loan from SCI to SMM that will be converted to equity in the books of SMM. Change In Ownership Structure Post Rights After the rights issue, Sembcorp Industries equity stake of Sembcorp Marine will either remain between 60.9% (if all existing sembcorp marine public shareholders exercise their rights) and 69.9% (if no existing sembcorp marine public shareholders exercise their rights). Sembcorp Marine (the “Company“) announced on 7 September 2020 that, as at the close of the Rights Issue on 2 September 2020, valid acceptances and excess applications were received for 9,434,192,612 Rights Shares, representing approximately 90.2% of the 10,462,690,870 Rights Shares available under the Rights Issue. BigFatPurse Pte Ltd71 Ayer Rajah Crescent #03-06Singapore 139951Tel: 65-9812 0411Email: admin@drwealth.com, Intelligent Investors Immersive Early Retirement Masterclass SaaS Hypergrowth Investing China Stocks and Options Course 8-Figure Trading Blueprint Cryptocurrency Property Investing Masterclass All Courses, Blog postCase StudiesVideosInterviews#AskDrWealth, CEO of Dr Wealth. SELL the rights which you don’t wish to convert and. But commission can be $25 for the transaction. OR yes if your rights are custodised by POEMS. Does sell this stock require commission fee? Following the rights issue, it intends to distribute its entire stake in SembMarine to shareholders. Sembcorp Marine, which has been doubly hit by the COVID-19 pandemic and recent collapse in oil prices, will also be able to better address its urgent need to recapitalise, meet liquidity requirements, and strengthen its balance sheet to ride through the prolonged downturn in the offshore and marine industry. Hi Alvin, After subscribed to the rights, when will it become actual SCM share that I can trade? Sembcorp Marine: Disclosure of Interest/ Changes in Interest of Director/ Chief Executive Officer :: Disclosure of Changes in Interest of Director - Mr Patrick Daniel (SGXNet / 15 Sep 2020 12:19) Sembcorp Marine: General Announcement :: Results on Rights Issue The deal will involve a five-for-one rights issue and a subsequent share distribution that will see Sembcorp Industries and SembMarine parting ways. Gross proceeds of S$2.1 billion are expected to be raised from this exercise. So what benefits or “rights” to buy are we talking about? Sembcorp Industries will continue to be focused on its core areas of energy and urban development, and be poised to capture opportunities in sustainable energy transition, while Sembcorp Marine builds on its core engineering solutions for the offshore, marine and energy industries. Digging into Sembcorp Industries’ latest corporate presentation during their AGM on 21 May 2020, the marine business is making losses of S$85 million. You can choose to sell them instead of paying to convert them to shares. Do we need to do anything or just wait for the announcement. If you need more information, you can refer to this where we explained what Sembcorp Marine and Sembcorp Industries wanted to do. Hi Alvin, I just received the notice. The outstanding loan principal amount is S$1.5 billion. To make it easier for you, these are your possible options: These are renounceable rights which means they will be traded on SGX. For information on the trading of odd lots, please refer to our 10 September 2020 announcement at, Please see our 15 September 2020 announcement at, Upon completion of the Transaction, Temasek is now a direct and significant shareholder of both Sembcorp Industries, and Sembcorp Marine. Following the foregoing utilisation, the amount of unutilised net proceeds would be approximately S$0.6 billion. The last option is that you can subscribe to fewer rights than you were entitled. Sembcorp Industries (SCI) and Sembcorp Marine (Sembmarine) aim to recapitalise the latter through a $2.1b renounceable rights issue, the companies announced in a press release. Based on recent average price of $0.74 for Sembcorp Marine, the theoretical ex-rights price (TERP) is TERP = [ ($0.20 x 5) + ($0.74 x 1)] / 6 = $0.29/share Two parts involved — first a renounceable rights issue by Sembcorp Marine and then a demerger of Sembcorp Marine from Sembcorp Industries. The advantage of the former is that you don’t need to pay additional fees (above the $0.20 conversion) for the excess rights. Rights Issue, Transaction Rationale and Related Updates, Sembcorp Industries and Sembcorp Marine jointly announced on 8 June 2020 a, recapitalisation of Sembcorp Marine through a S$2.1 billion renounceable rights issue (the “, ”), followed by a demerger of the two companies via a distribution in specie (the “. An author of, Personal Finance Masterclass (Online Course). Sembcorp Marine wishes to thank Shareholders for demonstrating their support for the Company by participating in the Rights Issue, at the EGM and through the subscription process, and enabling the successful completion of the Rights Issue. Loss-making Sembcorp Marine on Monday proposed a S$2.1 billion ($1.5 billion) recapitalisation through a rights issue that will be backed by the rig builder's parent firm, Sembcorp Industries, and state investor Temasek Holdings. Simply multiply the Number of Share you own by 5 to get the number of rights you have. The Rights Shares are your entitlement and have value. Following the Transaction, Temasek’s wholly owned subsidiary Startree Investments is now a direct and significant shareholder of the Company. We are talking about the rights here. SINGAPORE (Reuters) - Singapore's Temasek Holdings stepped in on Monday to support a S$2.1 billion ($1.5 billion) rights issue by Sembcorp Marine SCMN.SI as … Hi Alvin Can sell rights online like on the POEMS platform? You can also subscribe to more rights than what you were given. But the management would often seek loans from banks and only resort to rights issue if debt is no longer a viable channel. The issue price will be at S$0.20 per rights share . For more details, please refer to Sembcorp Industries’ 11 September 2020 announcement. Update 20 Aug 2020: Given that the rights are trading at $0.002, it might not make sense to sell if you have too little rights because you have to pay minimum commission. Details of the valid acceptances and excess applications received for Rights Shares are as follows: Pursuant to the Sub-Underwriting Agreement, Startree, a wholly-owned subsidiary of Temasek, has subscribed for the balance of 1,028,498,258 unsubscribed Rights Shares. Can they still use CPF/SRS funds to subscribe rights or must be done in cash mode? Of the net proceeds, an amount of S$1.5 billion (representing the consideration for 7,500,000,000 Rights Shares subscribed for by SCI pursuant to the SCI Undertaking Agreement) has been allocated and will be utilised to repay (by way of set off) the outstanding principal of S$1.5 billion under the Subordinated Credit Facility in accordance with the stated use and the percentage allocated as disclosed in the Offer Information Statement. The Rights Shares will, upon allotment and issue, rank pari passu in all respects with the then existing Shares, except that they will not rank for any dividends, rights, allotments or other distributions the record date for which falls before the date of allotment and issue of the Rights Shares. This is possible because the deal is a “renounceable” rights issue, which means shareholders can renounce or surrender their rights as they are under no obligation to take up their entitlements. Hi Alvin, what would be your advice in this case (150,000 rights)? Conducts the flagship Intelligent Investor Immersive program under Dr Wealth. THE BUSINESS TIMES Sembcorp Marine - Find Sembcorp Marine News & Headlines, insight and analysis in Singapore, Asia-Pacific & global markets news at The Business Times. You should either sell the rights or pay for them to convert to shares. I have 30 lots in semb Corp marines, do I have to sell or buy 6 lots right, 30,000 x 5 = 150,000 rights Sell 150,000 @ $0.002 = $300 Subscribe 150,000 @ $0.20 = $30,000. Please refer to our 15 September 2020 announcements  at, Singapore Hub and Supporting Yards (Indonesia), Leveraging a Resource Recovery Opportunity, Changes in Interest of Substantial Shareholder (15 September 2020), Changes in Interest of Substantial Shareholders (15 September 2020), Issue and Listing of Rights Shares and Settlement of SCI Distribution (10 September 2020), Results of the Rights Issue (7 September 2020), Offer Information Statement (14 August 2020), Renounceable Underwritten Rights Issue: (1) Lodgment of Offer Information Statement (2) Acceptance and Excess Application for Rights Shares (3) Trading of Nil-Paid Rights (Under Stock Code: THFR); and (4) Timetable of Key Events (14 August 2020), Results of the Extraordinary General Meeting Held by Sembcorp Industries (11 August 2020), Results of the Extraordinary General Meeting Held by Way of Electronic Means (11 August 2020), Conditional Record Date for the Rights Issue (5 August 2020), Possible Delay in Receipt of Printed Copies of Circular (29 July 2020), Receipt of Approval-in-Principle from SGX (22 July 2020), Sembcorp Marine SGX Launch Announcement & Appendices (8 June 2020), Additional Information in Response to Questions from Shareholders (10 August 2020), Additional Information in Response to Questions from Shareholders (6 August 2020), SIAS Dialogue Sessions for SCM on 28 July and SCI on 29 July – Key Shareholder Questions Addressed (30 July 2020), Additional Information in Response to Questions from SIAS  (22 July 2020), 35.1% discount to TERP based on last close of S$0.85, 76.5% discount to last close of S$0.85 on 3 June 2020, Sembcorp Industries has irrevocably undertaken a subscription of its pro rata entitlement of S$1.27 billion and an additional S$0.23 billion of Rights Shares – a total commitment of S$1.5 billion, Sembcorp Industries will be setting off its outstanding S$1.5 billion subordinated loan extended to Sembcorp Marine in June 2019 (the “, Temasek has sub-underwritten the balance of the Rights Issue with no sub-underwriting fees, After the completion of the Rights Issue, Sembcorp Industries undertook a distribution of its stake in the recapitalised Sembcorp Marine to Sembcorp Industries shareholders on a pro rata basis as dividends, Entitled Sembcorp Industries shareholders received 4.911 Sembcorp Marine shares for each Sembcorp Industries share held, fractional entitlements disregarded, with no cash outlay. 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