Singapore's Sembcorp Marine reviews STX OSV stake - source
Wednesday, 18 January 2012 | 16:30
Sembcorp Marine , the world's second-largest rig-builder, is considering buying the 50.75 percent stake in STX OSV Holdings Ltd, a source said on Tuesday, driving STX OSV shares up nearly 6 percent.
South Korea's STX Group, the parent of STX OSV, plans to invite bids for its about $603 million worth stake in Singapore-listed offshore vessel builder STX OSV, a move seen as part of its fundraising efforts.
Online news outlet MoneyToday reported that Keppel Corp and Sembcorp were strong candidates to buy the stake.
Sembcorp has not yet made a final decision, a source close to the deal said.
After the news, STX OSV shares surged 5.77 percent to S$1.375 as of 0725 GMT.
STX said in October it planned to secure 700 billion Korean won in funds via the sale of foreign assets by early this year and was dropping ambitions for large-scale mergers and acquisitions..
STX had chosen JP Morgan and Standard Chartered to manage the sale.
A company official said STX sent memorandums on the sale to about 18 potential investors but declined to give further details.
Its other shipbuilding unit STX Offshore & Shipbuilding said in a regulatory filing in December the shipbuilder sold bonds with warrants worth 100 billion won to repay debt.
Recent market speculation that STX Group was short of funds and planning large-scale fundraising amid weakening sentiment on the shipping and shipbuilding sector pressured the share prices of STX Group companies including STX OSV and STX Pan Ocean .
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