SembCorp Marine Increases Stake in Jurong Shipyard
SembCorp Marine has increased its interests in the capital of its wholly owned subsidiary, Jurong Shipyard Pte Ltd ("JSPL") by S$300 million through the subscription of 300 million redeemable preference shares at an issue price of S$1.00 each.
Consequent to the subscription, SembCorp Marine will hold 50 million ordinary shares and 300 million redeemable preference shares in the capital of JSPL. The aforesaid subscription is not expected to have any material impact on the net tangible assets or earnings per share of SembCorp Marine for the current financial year ending December 31, 2007.
Part of the funds from the recapitalization will be used by JSPL to make a conditional payment on November 19, 2007 to Societe Generale in the sum of US$115,450,000 together with agreed interest, which payment was a pre-condition set by Societe Generale for the closing out of its transactions with JSPL. Societe Generale accepts that such payment is without prejudice to JSPL's position that the transactions are unauthorized and is subject to JSPL's right to a refund of the monies from Societe Generale in the event that the dispute on the validity of the transactions is ultimately resolved in JSPL's favor. This amount is part of the loss of US$303,000,000 announced on November 1, 2007 from the unauthorized transactions which JSPL maintains are not valid and binding.
JSPL's financial position at all material times remains strong and positive. JSPL is also currently engaged in on-going discussions with the other banks involved in the forex transactions.
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