United Global buys 95% stake in related Indonesia business for S$18.2m

UNITED Global is buying 95 per cent of related lubricant maker PT Pacific Lubritama Indonesia for S$18.24 million in cash and stock.

The sellers of Pacific Lubritama are family members of United Global's controlling Wiranto family.

United Global, which is also a lubricant maker, will pay for its stake with S$8.2 million in cash and new shares representing 11.8 per cent of existing issued share capital, or 10.6 per cent of the enlarged share capital.

The new United Global shares are valued at 30 Singapore cents apiece, which is a 1.6 per cent discount to the stock's 30.5 Singapore cent volume-weighted average price on May 5, which was the last full day of trading before the deal was signed.

United Global's 95 per cent interest in Pacific Lubritama would have had 88.44 billion rupiah (S$9.3 million) of net asset value and 88.39 billion rupiah of net tangible asset attributable to it as at Dec 31, 2016. Net profit attributable to those sale shares was about 25.9 billion rupiah in 2016.