UOL increases stake in UIC to 49.78%
UOL announced that it has increased its direct stake in United Industrial Corporation (UIC) from 48.96% to 49.78%, following the purchase of 11,762,659 shares on Nov 20, at an average price of $3.3072 per share.
85,000 shares were purchased in the open market, and the remainder was bought from four interested parties: Haw Par, Wee Cho Yaw, ‘Associate of Gwee Lian Kheng’, and Wee Sin Tho, says Credit Suisse.
In an SGX filing, UOL reiterated that the acquisition is in line with its objective of consolidating its interest in UIC to achieve statutory control “in the future”. Credit Suisse says the Nov 20 purchases indicate that UOL intends to gain statutory control of UIC “in the near term”.
Tto reach the 50% statutory control level, UOL would need to purchase an additional 3,105,992 shares, which Credit Suisse believes to be “a near term eventuality”.
UOL is Credit Suisse’s top pick among the Singapore developers as it “will be a key beneficiary of improving Singapore residential fundamentals, with the restructuring potential of UIC as ongoing catalysts in the horizon.”
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