Part 8/11:

1. Semcorp Marine’s Expansion: Semcorp Marine could raise funds through a rights issue, demerge from Semcorp Industries, and acquire Capital Offshore, further consolidating the local offshore sector under its umbrella.

If either pathway materializes, it may lead to the separation of offshore assets from Keppel’s core business. This would, in theory, enhance Keppel’s attractiveness by removing the heavily weighted offshore segment, which currently contributes only 1.4% of net income but accounts for 24% of total assets, leading to a low return on assets.

Implications for Investors and Stock Valuations