A consortium led by Yanlord Land Group and Perennial Real Estate Holdings has acquired a 33.5 per Cent stake in United Engineers at $2.60 a share.
The investor group has also agreed to buy a 29.9 per cent stake in UE subsidiary WBL Corp at $2.07 a share. They will sell a further 19.9 percent stake if the bidding group manages to obtain at least 50 percent of WBL.
The consortium will pay $729.7 million for the stakes.
The two stakes are held by Ocbc Bank, its insurance arm, Great Eastern and the bank's founding Lee family.
Chinese property developer Yanlord holds 49 per cent of the consortium, while Singapore landlord Perennial accounts for 45 per cent and a Chinese investor owns the remaining 6 per cent.
Their offer represents a 7.9 per cent premium to the United Engineers closing price of $2.41 on Sept. 26, the day before OCBC announced a strategic review of its stake. It is a 4.1 per cent discount to the stock's last price this week before trading was suspended .
The deal would cap a years-long push by OCBC to offload its stake in United Engineers, whose properties include Singapore shopping centers like Rochester Mall and the UE BizHub City mixed-used development.
Credit Suisse Group AG is advising OCBC and insurance unit Great Eastern Holdings Ltd. on a strategic review of their stakes in United Engineers.
Source: http://www.straitstimes.com/business/companies-markets/yanlord-perennial-led-consortium-acquires-key-stakes-in-united-engineers
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