Sembcorp Marine will acquire Keppel O&M under a new US$3.19bn agreement.
The original plan had been for Sembcorp and Keppel’s offshore and marine units to merge, but this has been abandoned in favour of buying the unit outright.
Sembmarine entered into an Amended and Restated Combination Framework Agreement with Keppel, setting out the revised transaction structure and terms on the proposed combination of the two groups.
The simplified transaction structure reduces consent and approval requirements and may reduce time to completion by up to two months.
The revised structure and terms underscore the parties’ commitment to establish the enlarged entity at the earliest possible time to better seize opportunities in the improving industry landscape.