學門類別
最新個案
- Leadership Imperatives in an AI World
- Vodafone Idea Merger - Unpacking IS Integration Strategies
- V21 Landmarks Pvt. Ltd: Scaling Newer Heights in Real Estate Entrepreneurship
- Snapchat’s Dilemma: Growth or Financial Sustainability
- Did I Just Cross the Line and Harass a Colleague?
- Predicting the Future Impacts of AI: McLuhan’s Tetrad Framework
- Porsche Drive (A) and (B): Student Spreadsheet
- Porsche Drive (B): Vehicle Subscription Strategy
- TNT Assignment: Financial Ratio Code Cracker
- Winsol: An Opportunity For Solar Expansion
Sembcorp Marine: Recapitalization and Demerger During COVID-19
內容大綱
On June 8, 2020, Sembcorp Marine Ltd. (SCM) announced a S$2.1 billion recapitalization plan to be followed by a demerger from Sembcorp Industries Ltd (SCI). SCM’s business had been significantly affected by the COVID-19 pandemic and a collapse in oil prices, resulting in a critical need for liquidity. The recapitalization would be done through a rights issue. The demerger would be conducted through a subsequent share distribution of SCI’s stake in the recapitalized SCM to SCI’s shareholders.<br><br>The case seeks to provide a reasonable valuation of SCM based on its past financial performance and other relevant market information. It also analyzes the rationale of the demerger and the impact of the demerger on shareholders of SCM and SCI.
學習目標
This case can be used in an advanced undergraduate- or graduate- level course on corporate finance or financial management. It presents an opportunity for students to study the sources of funding during a pandemic, conduct a valuation exercise, and explore a unique demerger of two listed companies. After working through the case and assignment questions, students will be able to do the following:<ul><li>Analyze the rationale of the recapitalization and demerger.</li><li>Value the shares using the discounted cash flow model and relative valuation.</li><li>Determine how shareholders should respond to the rights issue.</li><li>Analyze the impact of the announcement on the value of both firms.</li></ul>