Failed Bidding Throws United Engineers to Lowest in 17 Years
Published By : 16 Feb 2015 | Published By : QYRESEARCH
Talks between United Engineers Ltd. and the richest man in Thailand came to a halt recently, as the bid could not be completed successfully. Post the failed discussions, the shares of United Engineers dropped the most they have in 17 years.
The shares of the property and construction company fell as much as 17 per cent. The shares were 15 per cent lesser and were valued at S$2.68 on Monday 12:20 pm. This is their biggest fall since 1998.
The Oversea-Chinese Banking Corp. and Great Eastern Holdings Ltd., which is its own insurance arm, currently own the controlling stakes in United Engineers. A statement that was released on February 14 showed that the duration for talks to be held with TCC Top Enterprise Ltd. had reached their end as neither company was able to reach an agreement.
Analyst Goh Han Peng who works for DMG and Partners Securities Pte, said that the investors were expecting the deal to go through, which is why when it failed it resulted in the selloffs.
He also added that United Engineers will be looking for other potential investors.
United Engineers were divesting their assets are making the purchase of WBL Corp., a Singapore based for S$725 million in 2013. The total sum also included debt. A deal was made in October regarding the sale of a majority stake in UE E&C Ltd. United Engineers had agreed in August to sell its car dealership unit to Samling Group from Malaysia.
Charoen Sirivadhanabhakdi, the richest man in Thailand and the owner of TCC Top Enterprise, had begun the examination of financial aspects of United Engineers in the previous year while deliberating over a potential acquisition.