UMS makes mandatory unconditional offer for JEP at S$0.20 per share

MAINBOARD-LISTED precision engineering firm UMS Holdings on Wednesday acquired another 13.1 per cent of shares in Catalist-listed JEP Holdings.

UMS acquired 54.2 million shares for S$10.8 million, or at S$0.20 per share, from JEP executive director Zee Hoong Huay. The deal raises UMS's stake in JEP to 53.8 per cent, or 222.6 million shares.

This is the highest price UMS has paid for JEP's ordinary shares in the last six months. (see amendment note)

UMS directors believe the offer will help UMS diversify beyond its traditional semiconductor business and to broaden its earnings stream. The company said it may explore business synergies with JEP and tap into growth opportunities in new markets.

UMS also said it intends to preserve the listing status of JEP, but that it will assess further options if the public float falls below 10 per cent.

Andy Luong, who is chief executive and executive chairman of both UMS and JEP, has a 0.28 per cent direct stake in JEP and deemed interest in all the JEP shares held by UMS.

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UMS shares closed flat at S$1.36 on Wednesday. JEP shares closed 10 per cent or S$0.02 higher, at S$0.22.

Amendment note: An earlier version of the article said the offer will only become unconditional if UMS holds more than 50 per cent of the voting rights. This statement is incorrect and has been removed.