Shareholders of Singapore’s offshore and marine contractor Sembcorp Marine on Monday voted in favour of a renounceable rights issue to raise S$1.5 billion (US$1.1 billion) in funds to support the company's operations.

More than 98% of shareholders approved the group’s proposed renounceable underwritten rights issue at an extraordinary general meeting (EGM).

Under the exercise, shareholders will receive three rights shares priced at 8 Singapore cents for every two existing shares held.

Startree, an indirect wholly owned subsidiary of the Singapore government’s investment arm Temasek, had given an irrevocable undertaking to Sembmarine to subscribe for its 42.6%