Seatrium Ltd (SGX:5E2) saw its shares plummet by 4.50% during intraday trading on Friday, as investors reacted to news of a legal settlement. The company, formed from the merger of Keppel Offshore and Marine with Sembcorp Marine, has agreed to pay $1 million to resolve a dispute with EIG Management Company.

According to a filing with the Singapore Exchange on Thursday, Seatrium confirmed the settlement of the legal case that was initially brought against Keppel Offshore and Marine. Following the merger, Seatrium took over the litigation and successfully negotiated its resolution through the million-dollar settlement.

The sharp decline in Seatrium's stock price suggests that investors may be concerned about the financial impact of the settlement or potential underlying issues that led to the legal dispute. While the $1 million payout may not be significant for a company of Seatrium's size, it could indicate ongoing challenges in the offshore and marine sector or lingering liabilities from pre-merger operations.