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Lian Beng plans to sell stake in asphalt premix maker for S$9.4m
LIAN Beng Group is looking to dispose of its 40 per cent stake in United E&P (UEP) for S$9.4 million.
The mainboard-listed construction and civil engineering services firm on Thursday evening announced it has signed a sale and purchase agreement with KKC Investment Holding, an unrelated third party, for the deal.
Singapore-based UEP manufactures asphalt premix, providing pavement solutions for infrastructure-related road works.
Lian Beng said that after a thorough review of its business plan, it determined that the ownership of UEP is “not strategic” to the company, given UEP’s business activities and Lian Beng’s minority stake in it.
The proposed sale will also free up capital to be deployed to other opportunities that can potentially generate better returns for the group, Lian Beng noted.
The buyer, KKC, is beneficially owned by UEP’s existing management and is not related to any Lian Beng director or controlling shareholder and their associates.
The sale price of S$9.4 million took into account the unaudited financials of the 5.7 million ordinary shares of UEP as at Nov 30, 2019.
Shares of Lian Beng fell 0.5 Singapore cent or 0.9 per cent to close at 53 cents on Thursday, before the announcement.