You are here

UOB launches offer to take Far Eastern Bank private

nabmUOB24315.jpg
United Overseas Bank (UOB) is looking to take subsidiary Far Eastern Bank (FEB) private by offering S$3.51 per share for the shares that it does not own in FEB, which could total up to S$74.15 million.

United Overseas Bank (UOB) is looking to take subsidiary Far Eastern Bank (FEB) private by offering S$3.51 per share for the shares that it does not own in FEB, which could total up to S$74.15 million.

UOB already holds a 78.88 per cent stake in FEB, a public unlisted company incorporated in Singapore. FEB offers commercial banking and financial services.

The offer will provide minority shareholders the opportunity to realise their investment by unlocking the value of their unlisted and illiquid shares, UOB said in the offer document. "Privatising the company will provide (UOB) with greater control and management flexibility to integrate the company's operations, resulting in increased efficiencies," it added.

The deal is conditional on UOB receiving valid acceptances of at least 90 per cent of the offer shares at the close of the offer. Certain shareholders, with stakes totalling 5.39 per cent, have each given irrevocable undertakings to UOB to accept the offer.

sentifi.com

Market voices on:

The acquisition will be funded by internal cash resources, UOB said.

Independent financial adviser Provenance Capital said the offer terms are fair and reasonable and recommends that independent shareholders accept it.

grab

Receive $80 Grab vouchers valid for use on all Grab services except GrabHitch and GrabShuttle when you subscribe to BT All-Digital at only $0.99*/month.

Find out more at btsub.sg/promo

Powered by GET.comGetCom