United Engineers

[crabcrab]

UE ($2.85) - Seems like the deal may likely be through though. Expect that any offer (if any) may come sooner than later of the 6-weeks exclusivity period since UE is continuing trading without any halt. The closer to the expiry of the 6 weeks period, the higher UE may trade at a higher price as speculation persists. This will not be good to the offerer as offered premium may not be high enough to attract sellers. Good luck to all.

(Stay Vested. Caveat Emptor)

[freedom]

He is playing a dangerous game. The balance sheet of UE is already leveraged enough. Unless he thinks he can monetize more than what's on the book, there is not much to gain.

UE is no F&N.

[greengiraffe]

Post the continued divestment of non core assets at WBL levels, UE has deleveraged substantially.

I suspect this is a deliberate attempt on the part of OCBC/GE/UE in order to unlock the true potential of the conglomerate.

UE ex the troublesome and volatile electronics and auto division is simply a real estate company with proven track record:

Commerical properties in Singapore, non-bank style developments in Singapore and excellent bluechip record in China.

However, at current prices, there is limited upside to UE. The focus as I say will be on how FCL will be positioned to benefit from future value extraction Towkay's Charoen's heavy exposure in real estate spanning from Australia to South East Asia to China to Europe.

That is the next episode. Given that most SGX developers have been to focus on their core markets and neglected expansion in less lucrative but more stable markets like Australia and Europe, Towkay Charoen is in a better positioned even though most of these assets are recent purchases.

Odd Lots Vested
GG

[freedom]

What is deleveraged exactly?

The acquisition of investment properties from HP or 79 Anson? Both properties were bought with leverage and the price was around SGD 1 billion.

[nsengkia]

He is playing a dangerous game. The balance sheet of UE is already leveraged enough. Unless he thinks he can monetize more than what's on the book, there is not much to gain.

UE is no F&N.

Buddies may want to take a look at UE E&C instead. Even with a whitewash waiver to make a bid for UE E&C along with a bid for UE, if a UE takeover does materialise I opine that it would only be a matter of time before UE E&C is put on the block.
Vested in UE E&C

[greengiraffe]

Never heard of this research co before but I suspect someone high profile is spilling beans on the rivalry between Lee and Tan families of OCBC.

Very good history for anyone that is interested...

[toiletsiao]

Never heard of this research co before but I suspect someone high profile is spilling beans on the rivalry between Lee and Tan families of OCBC.

Very good history for anyone that is interested...

this is a good read

[pianist]

the way wbl was quickly bought and to be put on sale doesn't look there is any real decent person wanting to run and grow the underlying business. maybe we really need the thai element

just sold some UE shares...just waiting to sell someone ya

congrats to those vested

[greengiraffe]

http://www.businesstimes.com.sg/archive/...l-20140830

PUBLISHED AUGUST 30, 2014
COMMENTARY
Tussle for WBL: what was it all for?
UE pays through its nose to take over WBL, only to sell parts of it a year later
BYCAI HAOXIANGCORRESPONDENT
haoxiang@sph.com.sg @HaoxiangCaiBT

REVERSAL OF FORTUNE
In a year, Wearnes has gone from expensive takeover target to non-core asset. - ST FILE PHOTO
PERHAPS there were forces beyond his control. But when then-United Engineers (UE) chief executive Jackson Yap announced that his property and engineering firm was going to fight fellow shareholder Straits Trading for control of WBL Corp in January 2013, he gave other reasons to justify what, in hindsight, was essentially a quest to unlock value for OCBC.
Straits Trading had triggered a mandatory takeover offer for WBL a few months earlier after it increased its stake to about 45 per cent. OCBC, which owned about 38 per cent of WBL with related parties, expressed concern that the offer was too low.
UE, owned by OCBC but with no shares in WBL, jumped into the fray with a higher bid, supported by the OCBC parties. It surprised the market.
Mr Yap told reporters the proposed acquisition was "transformational" and a "quantum leap". WBL's renowned luxury auto distribution business, Wearnes Automotive, would give UE a stream of recurring earnings to smooth out its lumpy property development cashflow.

Never heard of this research co before but I suspect someone high profile is spilling beans on the rivalry between Lee and Tan families of OCBC.

Very good history for anyone that is interested...

[specuvestor]

I think the Lees and Tans really bad blood. Once Tans committed their cash flows to ARA, Lees putting up UE for sale. OCBC obviously on non core divestment mode and they both know how much WBL is worth ie at least 30% more based on Churchill report.