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SGX issues 'trade with caution' note on United Engineers

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THE Singapore Exchange (SGX) issued a "trade with caution" note on United Engineers on Friday in view of the substantial 7.52 per cent increase in its share price on Thursday.

United Engineers has responded on Friday that other than the announcements relating to discussions by controlling shareholders previously announced in August last year and February this year, "it was not aware of any other reasons that could possibly explain the trading in its securities".

The group had disclosed previously that its controlling shareholders, Oversea-Chinese Banking Corporation Ltd and Great Eastern Holdings Ltd, have been approached by a party in connection with a possible transaction relating to their combined stakes in United Engineers and WBL Corporation Ltd. It had said that this may or may not lead to an offer for the shares of the group and WBL.

The SGX said on Friday that shareholders and potential investors should exercise caution when dealing in the securities. "We also wish to highlight that this is the third query on unusual trading activities in the shares of United Engineers Ltd in the past six months," the SGX added.