United Global completes partial disposal of unit

CATALIST-LISTED lubricant manufacturer and trader United Global on Tuesday said it has completed the partial disposal, or the divestment of a 40 per cent stake in its unit, United Oil Company, to global energy company, Repsol Downstream Internacional.

According to the sale and purchase agreement, United Global will receive a completion amount of US$32.9 million, with adjustments to this amount to be determined and payable after the finalisation of its "completion accounts", which will be prepared by the end of this month, the company said.

Following this deal, United Oil Company has ceased to be a subsidiary of the company, and will be considered an entity jointly controlled by United Global and Repsol.

In September this year, Repsol said it was making its first foray into South-east Asia by buying a substantial stake in United Global for up to US$46.5 million.

This included an initial cash consideration of US$36.5 million, with a further US$10 million payable depending on the delivery of revenue-related earn-out targets for FY2023.

United Global shares last traded at 50 Singapore cents on Nov 14.