SINGAPORE - Property group UOL's independent financial adviser has advised shareholders vote to waive their rights to receive a mandatory general offer from Haw Par Corp, as a result of share swap agreement announced in June.

The share swap, initiated by UOB's Wee family, which controls both companies, will involve UOL issuing 27.3 million new shares to Haw Par.

Haw Par is giving UOL 60 million shares in United Industrial Corp (UIC) in exchange for the UOL shares.

This is based on an exchange ratio of 2.2 UIC shares for one share in UOL. This puts a premium on UIC shares of 3.2 per cent versus the swap ratio of 2.27 implied by the volume- weighted average trading prices for both counters in the three months to June 20.

In a circular to shareholders on Tuesday (Aug 8), Deloitte & Touche Corporate Finance, the independent financial adviser, said the Whitewash Resolution, when considered in the context of the share swap, is "fair and reasonable".