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1761-1780 of 1912
Do you own any UE shares?
kirana ( Date: 04-Oct-2014 22:38) Posted:
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You are probably correct.
I wasn' t involved as an investor then, very busy with project and deadlines at work to care about the stockmarket.
Nevertheless, Charoen is someone who perseveres, he first bought the F& N and APB stakes from OCBC, then went on to buy up the remaining shares from the public. Lippo came up to challenge Charoen on the F& N general takeover, and eventually Charoen raised the price for F& N shares to the public and the rest is history. The lesson to learn is that those who sold out early to Charoen lost the additional gain of the final offer.
In UE, there is no complication. After Charoen buys over the OCBC and GE stakes in UE, a general offer has to be made to the public. If the price is low relative to the RNAV, a challenger may appear. Or the public simply refuses to sell in which case, Charoen would have to raise the offer price for takeover.
Those who are holding UE shares, keep them tight. Those who don' t have the shares, buy them up quickly before the show starts but be prepared to hold them for a couple of months for maximum gain as Charoen is likely to play hardball.
Qanghoo ( Date: 04-Oct-2014 22:10) Posted:
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Good evening! I didn' t know that I did triggered active discussions! Good luck to everyone vested. Hope all of us will have good night sleep dreaming of good fortunes!
If I remember correctly. OCBC had indicated very on that he wanted FnN and not APB. It was OCBC which had insisted all or nothing.
Kyoto2008 ( Date: 04-Oct-2014 21:13) Posted:
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He has a plan which was not known at first in the F& N and APB takeover. Initially, everyone thought he was after APB, but the end game was really the F& N properties that he was going for. After acquiring F& N, he spun off the properties into a reits and milk the drinks biz from F& N that is a cash cow. Look at the share price of Thai Bev, if Charoen has not done well, it won' t be soaring like nobody biz.
In UE, it is straightforward, he is after the properties. If he can' t raise the cash, I seriously doubt he would even waste his time to talk to OCBC and GE, there is no doubt that he will be reaching out to grab UE.
When the mkt opens, best grab as many UE shares you can buy from stale bulls. Looking at a $1 gain per share when new predators emerge to challenge Charoen.
i_love_girls ( Date: 04-Oct-2014 20:54) Posted:
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Charoen keep buying! Donno will get into deep deep debts or not sia!
Yep, that' s another piece going for sale. It seems that UE is transforming into a property co with the sale of the engineering, property development, automotive divisons and segments.
Great that all this is happening in the midst of a buyout from Charoen, the sales are unlocking the true value of UE for it' s shareholders to enjoy.
Was actually pleasantly surprised another party went to chope the UE E& C, coz this means if Charoen don' t play tango, another party may. They have some nice freehold commercial properties that can be further developed and enhanced.
Expect Charoen to play hardball, but don forget who' s on the UE court, a formidable opponent working for the shareholders.
hem2998 ( Date: 04-Oct-2014 19:03) Posted:
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good, waiting for gd news
kirana ( Date: 04-Oct-2014 19:51) Posted:
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Thank you Kyoto for digging more and sharing. How are you doing there.
UE also has over 80% stake in MFS tech.
It will sit on a cash horde of ard $100m once the s&p of MFS biz is completed.
It will sit on a cash horde of ard $100m once the s&p of MFS biz is completed.
Apologies it should be:
Supposing UE sells for a premium of 35.9% above it' s NAV of $2.79 (POEMs analytics, considered already undervalued), price is $3.79.
Kyoto2008 ( Date: 04-Oct-2014 18:07) Posted:
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Supposing UE sells for 35.9% of it' s NAV ($2.79 from POEMs analytics), price is $3.79.
UE shareholders is likely in for a windfall.
Kyoto2008 ( Date: 04-Oct-2014 17:59) Posted:
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Book value per share of UE E& C is 92 cents (from POEMs analytics), sold for $1.25, a premium of 35.9%.
UE owns about 62% of UE E & C.
Let the predators comes, the " hunger games" begin!
Kyoto2008 ( Date: 04-Oct-2014 17:22) Posted:
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I interpret this news as an attempt by UE to defend itself by selling off profitable parts that are undervalued so as to make it more expensive for any predator to buy over the UE shares from OCBC and GE.
This is extremely favourable to shareholders of UE. Must also note people on UE' s board are seasoned corporate finance figures, like Koh Beng Seng (former MAS deputy MD, UOB deputy President), top brains in the finance arena.
Charoen may not be the only one interested in UE, other predators could be lurking in the background waiting for an opportunity, if he wants to press the price down and OCBC relents, it will simply invite the predators to challenge his control over UE.
Channel News Asia
3rd Oct 2014.
Sale of another subsidiary of UE, increasing the cash inflow to UE.
SINGAPORE: Local conglomerate United Engineers has agreed to sell its majority stake in engineering and construction subsidiary UE E& C for around S$230 million, exiting a major business and making itself a more attractive target to potential buyers keen on its property portfolio.
Southern Capital Group, a private equity firm, will pay United Engineers S$1.25 for each UE E& C share, subject to various conditions being fulfilled.
United Engineers has several businesses including automotives and technology. Its huge property portfolio includes the Park Avenue chain of serviced residences, UE BizHub Tower in Singapore' s central business district, as well as developments in China and Malaysia.
Oversea-Chinese Banking Corporation (OCBC) and insurance subsidiary Great Eastern are currently in exclusive talks to sell their controlling stake in United Engineers to Thai billionaire Charoen Sirivadhanabhakdi, who has been on an acquisition spree in Singapore.
Kyoto2008 ( Date: 04-Oct-2014 17:13) Posted:
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In the first place, aren' t companies mostly profit driven? Would they give up profitability to employ a Singaporean rather than a foreigner who could agree to work at lower pay?
Are local companies different loyal to Singaporeans?
kirana ( Date: 04-Oct-2014 12:51) Posted:
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Have read their Ausgroup report and find the coverage is amateurish, lacks factual content, totally unusable.
The deadline for Charoen to complete the due diligence is approaching in a few days, hence there is some anticipation of the outcome. With UE being suspended for three days, it does look like an announcement on the purchase of the block of UE & sub shares from OCBC is going to take place.
CIMB has attempted (quite poorly in my opinion) to assess the value of UE, and after an initial bungled attempt, revised the NAV upwards giving the reason that UE is worth more after having sold off the automotives division bought from Wearnes. Investors would like to have a breakdown of the properties and assets owned by UE at fair market value rather than a general statement of clusters like residential worth how much, commercial worth how much. No analyst has made such a much needed analysis, therefore we have very little info on the actual value of UE shares. What is known is that after the sale of the automotives an Orchard gateway (formerly specialist shopping centre), UE has inflow of a huge amount of cash exceeding $1bln to offset against it' s debt. The upside is UE could very well be worth more than we expect, in any case, $3.40 as a base seems right at this moment.
The vol of UE shares sold since late Aug when the whole saga started is not a lot, hence Charoen may not have accumulated much UE shares. After buying over OCBC and GE' s UE shares, he would need to buy up from the public enough shares to have a stake of 51% before he can call the shots on the Board. Therefore, the final takeover price may hopefully be more than $3.40. With a close of $2.83 on last day UE traded, gain is expected to be 57cents upwards. For those who bought at lower prices, the gain is much higher, so the six weeks wait hopefully would have been worth it.
Found out that Investor Central does carry a report on this. Unfortunately, I don' t have an account there. Can some fortunate person share this?
Suddenly this discussion turns active! Singapore is more focused on dollars and cents. That applies to local people. I trust that cash overrides patriotism over here.
Singapore is just a pro foreigner country. Based on what your PM said, I guess Singapore will still be flooded with foreigner. Btw, what can Singaporeans do? Average Singaporeans just do not have the power to change all these, just like in Malaysia. This is because the leaders are just too powerful with the laws and connections hahaha