SINGAPORE: Singapore-listed conglomerate Keppel Corp and rig builder Sembcorp Marine on Thursday (Jun 24) requested the stock exchange in separate filings that their shares be placed on trading halts pending announcements.
Keppel and Sembcorp Marine were among the world’s biggest oil rig-builders, but a prolonged drop in oil prices and an oversupply of rigs have hit their businesses hard for several years.
Singapore state investor Temasek Holdings, which is the biggest shareholder in both companies, had scrapped its plans last year to take majority stake in Keppel, following the company’s poor financial results.
Markets had expected Temasek to lead a much-needed consolidation in the rig-building sector after a deal.
Earlier this year, Keppel said its struggling offshore and marine (O&M) segment will exit rig-building services, and that the company was also exploring inorganic options for the O&M business.
Source: Reuters
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