Sembcorp Industries shareholders are going to receive Sembcorp Marine shares...? What does this mean though? Share prices are gonna fall due to mass selling?

Hi there,

This is the excerpt from the rights issue.

"...following the SCI Distribution, the Company will have Temasek (which is currently the single largest shareholder of SCI) as a direct and significant Shareholder."

As the two companies are decoupling, SCI shareholders will not be penalised by this, and be given the equivalent share in SCM. At this point, i dont forsee a sell off, as most positions are in the red if you have been holding S51 over the past 3 years. It gives SCM stability, as now Temasek will have majority controlling interest with SCM, and guide the company out of this challenging time.

Hope i was able to shed some insight!

*This does not constitute as investment advice, please do your own due diligence before making any investment decisions.