" Sembcorp Marine To Buy Remaining 15% Equity Stake in PPL...

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Sembcorp Marine To Buy Remaining 15% Equity Stake in PPL Shipyard For US$115.1 Million​

24/08/2016 11:11AM AEST​

By Gaurav Raghuvanshi


SINGAPORE--Sembcorp Marine Ltd. (S51.SG) has signed a deal with Yangzijiang Shipbuilding Holdings Ltd. (BS6.SG) to buy the 15% equity stake in a Singapore shipyard that it doesn't already own for US$115.1 million.
The deal will allow Sembcorp Marine to take full control of PPL Shipyard Pte., which designs, builds and repairs oil rigs and ships. Following the acquisition, PPL Shipyard will becomes a wholly-owned subsidiary of Sembcorp Marine, the company said in a statement to the Singapore Exchange late on Tuesday.
Sembcorp Marine said its investment in the shipyard has helped propel the company to become a global player in the design and construction of jackup and semi-submersible rigs. Between 2001 and 2015, PPL Shipyard made cumulative profits of over 1.6 billion Singapore dollars (US$1.18 billion), it said.
Sembcorp Marine first invested in PPL Shipyard in 2001 when it took a 50% equity stake. In 2003, it raised its stake in the shipyard to 85%.
In a separate announcement, Yangzijiang said it will use the proceeds from the sale for its working capital requirements.
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while not directly related to MRM .....it may highlight some of the options post the reporting period.

I remain of the view - that the major shareholder will take Board control, and use the market to de-risk his investment. at that point - it will be a good long dated call to recovery in the industry. Timeframe 2-3 years.

waiting paitently !

rgds
V_H