United Engineers   

UE building up!

No reason to stay above $2.60 right? I think should sell.

 

with the bugbear WBL with its chak balang businesses off the negotitating table, UEL is now purely a property play. time for serious parties to come in. 1.2b is probably the valuation of the properties

 

Anyway I still cant seebwhy would OCBC let go of UEL a 2 bil company at 1.2 bil. And WBL isnt that bad what. Both UEL and WBL fits many of those announced bidders (samling, mulpha, ascendas) etc portfolio. Probably the other bidders wanted something else which ocbc not willing to let go? Or they seen the financials, did the calculations and think they should drop this deal. Anyway we wont know what really transpired behind the scenes as it were all private discussions. Yanlord's offer is not even strong at all. Nightmarish. To think reports that mentioned they are cash rich hoping will give a good offer. But many investors think otherwise lo.

joshlai86      ( Date: 14-Jul-2017 08:06) Posted: With hindsight,the acceptance of low offer price by ocbc seems to suggest while many are keen on UEL, not many want wbl. Past interested parties that looked at bidding probably didn't want wbl, that's why no deal was ever announced. The low offer price was a buffer too, in the event wbl crosses 30% lvl, then the bidder needs to offer more cash to mount a similar takeover of wbl. All in all, it was a very shrewd move by perennial. They got control of UEL on the cheap.

 

Probably because OCBC tired already and "anything, anyhow, faster sell" ??? It doesn't impact them much.

mrwise      ( Date: 13-Jul-2017 22:00) Posted: Management is not doing their best to get the best deal!

 

With hindsight,the acceptance of low offer price by ocbc seems to suggest while many are keen on UEL, not many want wbl. Past interested parties that looked at bidding probably didn't want wbl, that's why no deal was ever announced. The low offer price was a buffer too, in the event wbl crosses 30% lvl, then the bidder needs to offer more cash to mount a similar takeover of wbl. All in all, it was a very shrewd move by perennial. They got control of UEL on the cheap.

 

I googled the word "perennial" seems to fit into UE long history! There has to be an inside story.

 

Yes you are right. It may increase their stake in UE but to trigger the compulsory takeover will be tough. It's similar to temasek making an offer on olam earlier on. Olam remain listed.

MichaelSchenker      ( Date: 13-Jul-2017 22:22) Posted: From my understanding, the offeror is obligated to make an offer if they own more than 30% Let' s see what happens the next few trading sessions. CraigFoo      ( Date: 13-Jul-2017 22:06) Posted: I don't think the intention of the consortium is to privatize it. Taking a 33% stake at 2.6 without delisting it doesn't sound like a bad deal. Furthermore the nav is above $3. This looks more like a placement exercise

 

From my understanding, the offeror is obligated to make an offer if they own more than 30%

Let' s see what happens the next few trading sessions.

CraigFoo      ( Date: 13-Jul-2017 22:06) Posted: I don't think the intention of the consortium is to privatize it. Taking a 33% stake at 2.6 without delisting it doesn't sound like a bad deal. Furthermore the nav is above $3. This looks more like a placement exercise. MichaelSchenker      ( Date: 13-Jul-2017 20:32) Posted: Yes, that may be true, but however, current price of 2.7+ reflects the sentiment of a take-over price, which is  anticipated to be higher. Therefore, market reaction is, such that it will retreat back to, possibly 1.90 to 2.10 level. May take about 5 years of dividend to cover back. C' mon guys, time to move on...if it' s  a losing  trade, I don' t think it' s really much. -10%? (mine is -3%) Afterall, we cannot expect to win all the time. Better luck next time. Live to trade another day

 

I don't think the intention of the consortium is to privatize it. Taking a 33% stake at 2.6 without delisting it doesn't sound like a bad deal. Furthermore the nav is above $3. This looks more like a placement exercise.

MichaelSchenker      ( Date: 13-Jul-2017 20:32) Posted: Yes, that may be true, but however, current price of 2.7+ reflects the sentiment of a take-over price, which is  anticipated to be higher. Therefore, market reaction is, such that it will retreat back to, possibly 1.90 to 2.10 level. May take about 5 years of dividend to cover back. C' mon guys, time to move on...if it' s  a losing  trade, I don' t think it' s really much. -10%? (mine is -3%) Afterall, we cannot expect to win all the time. Better luck next time. Live to trade another day! Sunstar      ( Date: 13-Jul-2017 20:21) Posted: Typo error ..$2.60.. to add, can treat it as change of ownership from ocbc to perennial/Yanlord. Company fundamentals stay the same. This offer will officially end speculative trades and will trade on pure fundamentals

 

Management is not doing their best to get the best deal!

 

Well said....better to lick the small wounds and live to fight another day. This deal just leave a sour after taste in the mouth.

MichaelSchenker      ( Date: 13-Jul-2017 20:32) Posted: Yes, that may be true, but however, current price of 2.7+ reflects the sentiment of a take-over price, which is  anticipated to be higher. Therefore, market reaction is, such that it will retreat back to, possibly 1.90 to 2.10 level. May take about 5 years of dividend to cover back. C' mon guys, time to move on...if it' s  a losing  trade, I don' t think it' s really much. -10%? (mine is -3%) Afterall, we cannot expect to win all the time. Better luck next time. Live to trade another day! Sunstar      ( Date: 13-Jul-2017 20:21) Posted: Typo error ..$2.60.. to add, can treat it as change of ownership from ocbc to perennial/Yanlord. Company fundamentals stay the same. This offer will officially end speculative trades and will trade on pure fundamentals

 

Just a thought for hedge. Consider buying perennial and Yanlord becos if they get UE o the cheap they have synergies in SG and China and medium term will be positive for their share price. I am Long term vested in YLL, PER and GLP. As these are my preferred Long term china plays/ healthcare and both trading at 0.5 P/B. If GLP Indeed pays off, my two-way hedge to buy UE below 2.60 in case of improved offer, and add the acquiring stocks. 

MichaelSchenker      ( Date: 13-Jul-2017 20:32) Posted: Yes, that may be true, but however, current price of 2.7+ reflects the sentiment of a take-over price, which is  anticipated to be higher. Therefore, market reaction is, such that it will retreat back to, possibly 1.90 to 2.10 level. May take about 5 years of dividend to cover back. C' mon guys, time to move on...if it' s  a losing  trade, I don' t think it' s really much. -10%? (mine is -3%) Afterall, we cannot expect to win all the time. Better luck next time. Live to trade another day! Sunstar      ( Date: 13-Jul-2017 20:21) Posted: Typo error ..$2.60.. to add, can treat it as change of ownership from ocbc to perennial/Yanlord. Company fundamentals stay the same. This offer will officially end speculative trades and will trade on pure fundamentals

 

Yes, that may be true, but however, current price of 2.7+ reflects the sentiment of a take-over price, which is  anticipated to be higher.

Therefore, market reaction is, such that it will retreat back to, possibly 1.90 to 2.10 level. May take about 5 years of dividend to cover back.

C' mon guys, time to move on...if it' s  a losing  trade, I don' t think it' s really much. -10%? (mine is -3%) Afterall, we cannot expect to win all the time.

Better luck next time. Live to trade another day!

Sunstar      ( Date: 13-Jul-2017 20:21) Posted: Typo error ..$2.60.. to add, can treat it as change of ownership from ocbc to perennial/Yanlord. Company fundamentals stay the same. This offer will officially end speculative trades and will trade on pure fundamentals Sunstar      ( Date: 13-Jul-2017 20:16) Posted: $2.69 is not compulsory yet and I doubt it will cross 90%. Listing rules merely state that a general offer is required if the stake is more than 30%. So as shareholder, you can choose to reject and continue to hold the stock for dividend. Hopefully the price do not tank more once the offer period has expired

 

The problem is UE has always been a speculative trade for most!

Sunstar      ( Date: 13-Jul-2017 20:21) Posted: Typo error ..$2.60.. to add, can treat it as change of ownership from ocbc to perennial/Yanlord. Company fundamentals stay the same. This offer will officially end speculative trades and will trade on pure fundamentals Sunstar      ( Date: 13-Jul-2017 20:16) Posted: $2.69 is not compulsory yet and I doubt it will cross 90%. Listing rules merely state that a general offer is required if the stake is more than 30%. So as shareholder, you can choose to reject and continue to hold the stock for dividend. Hopefully the price do not tank more once the offer period has expired

 

Though the current offer is not attractive nor compelling, in a way it provide (interim) closure to months of anticipation ...... and with all the T& Cs (& offer-price) now open-book, hopefully rival counter-offer will emerge. 

I hunch it will get interesting ...... some may remember a certain party readied a $3b war-chest ..... banking facility late last year.

MrSingaporean      ( Date: 13-Jul-2017 19:38) Posted: I hope got counter offer.... And hope the other shortlisted bidders initially come out with higher price. For example a 1996 forbes research mentioned Samling family has in excess of 2.6 bil usd. Since 1980s till 2015 the samling family has paid out more than 3 bil usd in acquisitions. They are cash rich and own hundreds and hundreds of companies and are big shareholders in other companies. Hope they come to the rescue.... MichaelSchenker      ( Date: 13-Jul-2017 19:22) Posted: ummm......I really, really hope you are right, but remember Charoen' s offer was way lower than 2.60, that' s why it did not materialise

 

Typo error ..$2.60.. to add, can treat it as change of ownership from ocbc to perennial/Yanlord. Company fundamentals stay the same. This offer will officially end speculative trades and will trade on pure fundamentals

Sunstar      ( Date: 13-Jul-2017 20:16) Posted: $2.69 is not compulsory yet and I doubt it will cross 90%. Listing rules merely state that a general offer is required if the stake is more than 30%. So as shareholder, you can choose to reject and continue to hold the stock for dividend. Hopefully the price do not tank more once the offer period has expired

 

$2.69 is not compulsory yet and I doubt it will cross 90%. Listing rules merely state that a general offer is required if the stake is more than 30%. So as shareholder, you can choose to reject and continue to hold the stock for dividend. Hopefully the price do not tank more once the offer period has expired

 

Having the same feeling as you.....at $2.60 I rather keep to collect the yearly dividends becoz it's about my cost for my holdings.

kirana      ( Date: 13-Jul-2017 19:56) Posted: I' d rather UE stay listed and give me 12 cents per year till I am 65.

 

Lol.

kirana      ( Date: 13-Jul-2017 19:56) Posted: I' d rather UE stay listed and give me 12 cents per year till I am 65.

 

I' d rather UE stay listed and give me 12 cents per year till I am 65.