Independent financial advisers say WBL shareholders should reject UE offer

THE independent financial advisers to WBL Corp's independent directors have recommended that shareholders and bondholders reject the general offer made by United Engineers (UE).

In a circular released on April 9 to the Singapore Exchange, independent financial advisers KPMG said the UE offer is "not fair" from a financial point of view.

WBL is a technology, property and motor group. Its motor business includes distributing luxury cars such as Bentley, BMW and Bugatti. In China, it has a property development arm and a landbank.

UE, the second party to table a WBL bid, had initially indicated it would bid $4 per share, but raised that to $4.15 on March 12.

The offer, which also extends to WBL's convertible bonds, closes on April 24.

UE has also retracted a series of statements it made in its offer document issued on March 27, including a statement about WBL's net profits for the three months ended Dec 31 falling by 74.3 per cent on the same period in the previous year.