Spain's Repsol to conduct feasibility study to explore stake purchase in United Global unit

CATALIST-LISTED lubricant manufacturer United Global has inked a non-binding memorandum of understanding (MOU) with Spain's Repsol Lubricantes, it said on Tuesday.

Under the MOU, Repsol will conduct a feasibility study to explore the acquisition of an equity stake in United Global's wholly owned subsidiary United Oil Company.

Once the study is completed, the company and Repsol will discuss whether to proceed with the possible sale, and negotiate terms for a definitive agreement to be executed.

The MOU will remain in force for a period of six months from Oct 22, with the option to extend for a further six months subject to mutual agreement.

United Global shares closed unchanged at S$0.42 before the lunch break.