UE E&C

1.25 is lower than the previous close of 1.28
I wonder if it will work

I remember a few mths ago, share price was hovering around $1.20(before 7 cents dividend) when news broke that there was a discussion on sale of UE E&C but I guess the deal the offer did not go thru as the price was deem too low. My guess is that the offer price then should be also around $1.25. But now with lower profit margin and disappointment sales of The Crest (property), I guess UE decided to take the bite at this price.....

Hi, would any Value Buddy be able to comment on why market is buying at $1.26 now when the agreed sale price among the big boys was $1.25? I don't suppose small fries like us has any clout to block the sale, am I correct? (vested)

(13-11-2014, 04:14 PM)sykn Wrote: I don't suppose small fries like us has any clout to block the sale, am I correct? (vested)

We maybe small fries, but not too sure if this qualifies as a BIG BOY or if they are acting in concert with the offerer http://infopub.sgx.com/FileOpen/_141106_...eID=323172

Vested.

Cheers!

There are investors out there who share the same view as us that UE E&C is definitely worth more than 1.25 and unwilling to let go so cheaply.

Having done my sums, I'm convinced that UE E&C is worth more than $1.25, but sometimes what we believe may take a long time to realise (hopefully no forever). Just like my belief that China Minzhong was worth more than the $1.12 price I paid and refused to sell it at this price to IndoFood at the takeover. Today, I'm still in the red! But I'm still holding on as the financials are OK. So moral of the story is that when small fries pit our resources against the big boys, there are risks and "consequences". All the best to those still holding on, as I am.

Change in Interest of Substantial Shareholder
http://infopub.sgx.com/FileOpen/141114ST...eID=324792

I notice that one SSH by the name of Tong Teik (Private) Ltd, has increased its holdings from 5.16% to 6.09%. Not sure if this is a coordinated effort with Universal EC Investments who's going to buy over the company, or an opposing effort to block the take over. Please share if you have a better picture of the situation, thanks.

Not vested

If I am not wrong Tong Teik could have paid more than $1.25 for some of its shares so Tong Teik is not in coordinated effort else Universal EC Investments would have to revised its offer upwards. Either Tong Teik feels that the price offer at $1.25 is too low or that it wants to block the delisting. One way I guess it is doing it is to make UE E&C share price above $1.25 before UE's EGM so that shareholders of UE might vote against selling.

But I guess it is a futile effort and most likely Universal EC will become the significant shareholder of UE E&C. I doubt Universal EC will upped the price offer. It can dilute the other parties by share options, share buyback and etc once it control the company. Most probably UE E&C share price will hold above $1.25 for a while then drop once the conditional offer by Universal EC is over and delisting is not approved. Unless Tong Teik continues to buy after that period to pop up the price but it would be a futile effort. Throwing good money against bad money without gaining control.

http://businesstimes.com.sg/companies-ma...onditional

Universal EC Investments offer for UE E&C declared unconditional
By Kelly Tay kellytay@sph.com.sg@KellyTayBT
19 Dec 8:55 PM
UNIVERSAL EC Investments' voluntary conditional offer for all the issued and paid-up ordinary shares in the capital of UE E&C was on Friday evening declared unconditional....