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United Engineers' Q2 profit rises 303% on revaluation gains

UNITED Engineers Ltd (UEL) said on Friday its second-quarter net profit rose 303 per cent to S$45.3 million mainly due to revaluation gains from the group's investment property assets.

The group said revenue increased 9 per cent to S$121.9 million in the three months ended June 30, 2017, mainly due to a pick-up in China property sales.

The revaluation gains came from a valuation dated June 30 on the group's four properties in Singapore

Last month, a consortium led by Yanlord Land Group and Perennial Real Estate made a mandatory conditional cash offer for UEL at S$2.60 per share.

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The consortium had acquired a 33.5 per cent stake in UEL at S$2.60 per share and a 10 per cent stake in WBL Corporation for S$2.07 per share. It has committed to buy another 19.9 per cent stake in WBL at a later date. The total purchase cost for these stakes is S$729.7 million.

The move triggered a mandatory takeover for UEL.

At the offer prices, the consortium is valuing 100 per cent of UEL and 29.9 per cent of WBL at about S$1.83 billion.