Updates on UE, Citic Envirotech buyouts

Singapore

TWO mainboard-listed companies are inching closer to privatisation, in separate offers updated on Monday.

Chinese developer Yanlord Land Group now plans to delist United Engineers (UE), should it nab more than 90 per cent of ordinary shares and erode the counter's free float.

The announcement, which reverses an initial proposal in October to keep UE public, came as the offeror and its concert parties built up their stake in UE to about 81.06 per cent.

Yanlord's offer vehicle, Yanlord Investment (Singapore), had started out with a 35.27 per cent interest, but with the latest shareholding level in mind, has now said that it will not act to preserve UE's listing should the number of shares in public hands fall below the 10 per cent minimum.

It also intends to exercise its rights of compulsory acquisition, should it become eligible to do so.

The close of the S$2.70-a-share offer, which values UE at S$1.72 billion, has now been extended from Dec 26 to Dec 30 at 5.30pm, or any later date that the offeror may still announce.

Shareholders who have accepted the offers can withdraw their acceptances within eight days of the update.

Yanlord's bid had also triggered a chain offer for WBL Corp - an unlisted public company that was owned by UE - which the independent financial adviser (IFA), SAC Capital, has now deemed to be "fair and reasonable".

Separately, the buyout bid for mainboard-listed Citic Envirotech was also found to be fair and reasonable by IFA Novus Corporate Finance.

The majority owner, Citic Group Corp's Citic Environment Investment Group, launched a privatisation attempt at S$0.55 a share last month, with the offeror holding about 56.36 per cent of the shares as at Dec 9.

An extraordinary general meeting, for shareholders to vote on the planned delisting, has been scheduled for Dec 31 at Amara Hotel.