Perennial-Yanlord bid for UE 'fair and reasonable': independent adviser

THE takeover bid for United Engineers (UE) by a consortium led by Perennial Real Estate Holdings and Yanlord Land Group is "fair and reasonable", the independent financial adviser to UE has said in a report.

Holders of UE's common stock and preference shares should accept the bidding group's offer - S$2.60 per common share and S$2.60 per preference share - unless they can get a better price on the open market, the adviser, SAC Capital, said.

SAC said that it considered the liquidity of the stock, the balance sheet of UE and a sum-of-the-parts valuation of the group in arriving at its conclusion.

The offer closes at the end of the business day on Aug 29.

UE stock closed at S$2.69 on Tuesday.