November 19, 2007
SembCorp Marine unit pays $115.45 million to close out forex deals
The Jurong Shipyard subsidiary of Singapore's SembCorp Marine is making a US$ 115,450,000 payment in the wake of the foreign exchange brouhaha that led to last month's firing of SembCorp Marine's finance director (see earlier story.)
SembCorp Marine today announced that it has increased its interests in the capital of Jurong Shipyard Pte Ltd ("JSPL") by Singapore $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 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 31 December 2007.
Part of the funds from the recapitalization will be used by JSPL to make a conditional payment today to Societe Generale in the sum of US$115,450,000 together with agreed interest.
The payment was a pre-condition set by Societe Generale for the closing out of its transactions with JSPL. SembCorp Marine says that 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.
SembCorp Marine says that "JSPL's financial position at all material times remains strong and positive" and that JSPL is also currently engaged in on-going discussions with the other banks involved in the forex transactions.