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Yanlord makes fresh bid for Singapore's United Engineers, values it at $1.2 billion

Published 25/10/2019, 04:31
© Reuters.  Yanlord makes fresh bid for Singapore's United Engineers, values it at $1.2 billion
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(Reuters) - China-based property developer Yanlord Land Group (SI:YNLG) is making a second attempt to take over Singapore's United Engineers Ltd (SI:UTES), in a deal that values the real estate firm at S$1.66 billion ($1.2 billion).

It plans to pay cash for the shares it does not own at S$2.6 per share - a mandatory offer triggered after one of its units bought United Engineers stock owned by Perennial UW and Heng Yue Holdings.

Yanlord now owns 35.27% of United Engineers.

The S$2.6 per share price is the same price offered in a bid made a little over two years ago by Yanlord and Perennial Real Estate Holdings (SI:PERE) - a deal that failed after the consortium only gained shareholder acceptances representing just 1.4% of United Engineers' ordinary shares https://www.reuters.com/article/united-eng-ma/update-1-yanlord-perennials-offer-for-singapores-united-engineers-fails-idUSL4N1M103S.

The offer price also represents a 2.3% discount to United Engineers last closing price of S$2.66 on Tuesday when the Singapore firm requested a trading halt. The shares were trading at S$2.61 on Friday.

There are no plans to delist United Engineers, Yanlord said.

Yanlord is seeking to have at least 50% of United Engineers' voting rights for the offer to succeed. If the offer fails, Yanlord will not be able to make another offer for 12 months.

DBS Bank is the financial adviser on the offer.

($1 = 1.3639 Singapore dollars)

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