UGL may shelve A$1.2b sale of property services arm

[SYDNEY] Australian engineering and property management company UGL Ltd will likely shelve the planned A$1.2 billion (S$1.4 billion) sale of its property services arm after it received just one binding offer for the asset, a source familiar with the process told Reuters.

Sydney-based UGL will also probably cancel an earlier plan to demerge its DTZ global real estate services business by listing its shares and will instead concentrate on improving the unit's performance, the source said yesterday.

Debt-laden UGL had expected four bids from private equity companies for DTZ by a deadline of May 16, the source said, but the only confirmed final bidder was TPG Capital Management LP, the source said, without disclosing a bid price.