OUE approached to purchase UE shares but says not in talks

Benjamin Cher

 

SINGAPORE (Oct 5): OUE, the property group led by executive chairman Stephen Riady, revealed that the company has been approached to purchase shares in United Engineers (UE).

But OUE said there was " no ongoing discussions" and there was " no assurance whatsoever that any definitive or binding agreement for the purchase of UE shares by the company will be reached" .

The property group added that it will make announcements in the event there is any definitive agreement to purchase shares of UE.

OUE called for a trading halt at 11.12am to file the clarification after Bloomberg reported on Tuesday night that the property group, backed by the billionaire Riady family, was planning to pursue a stake in UE.

The report added that OUE was interested in bidding for shares held by Oversea-Chinese Banking Corp. (OCBC) and its affiliates.

(See also:  Billionaire Riady family said to pursue United Engineers stake)

Earlier on Sept 26, OCBC, the bank' s founding Lee family and associate insurance company Great Eastern Holdings, which together own a 36% of UE, announced they were reviewing &ldquo strategic options&rdquo regarding their combined stake.

A sale of the stake would trigger a mandatory open offer for all of UE shares.

(See also:  OCBC  and Great Eastern confirm reviewing options with United Engineers stake)

Shares of OUE, which had rose to a morning high of $1.81, fell to a low of $1.75 after the trading halt was lifted, only to close 1.1% higher at $1.775.