Temasek Holdings Pte (TMSK), Singapore’s state-owned investment company, raised S$327.6 million ($261 million) by selling shares in Sembcorp Marine Ltd. (SMM), a person with direct knowledge of the matter said.
Temasek sold 62.4 million shares in Sembcorp Marine, or less than 1 percent of the world’s second-biggest oil-rig maker, at S$5.25 each, said the person, who declined to be identified as the sale hasn’t been publicly announced. The shares were sold at the lower end of the S$5.25 to S$5.30 price range within two hours after the close yesterday, the person said. Stephen Forshaw, a spokesman for Temasek, declined to comment.
The investment company sold the shares after they reached their highest in more than seven months on March 2, a week after the rig maker reported profit that surpassed analysts’ estimates. Last month, Sembcorp Marine won its first drill ship order from Sete Brasil Participacoes SA for $793 million and is building new yards in Singapore and Brazil to capture demand for offshore products, including drilling rigs and floating production units.
The stock slumped as much as 5.2 percent to S$5.12 and traded at S$5.19 as of 9:24 a.m., set for its biggest decline since Nov. 1 and the most among the 30-member Singapore benchmark Straits Times Index. (FSSTI) The shares were sold at a 2.8 percent discount to yesterday’s close.
Temasek has a 3.2 percent direct stake in Sembcorp Marine, according to data compiled by Bloomberg. It’s also the controlling shareholder of Sembcorp Industries Ltd., which in turn owns 61 percent of the oil-rig builder, the data showed.
Sembcorp Marine may have its biggest order book since 2008 as Royal Dutch Shell Plc and Petroleo Brasileiro SA (PETR4) invest more on exploration and drilling to increase output.
UBS AG managed the sale of the stake.
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