Yanlord revives UE takeover bid at same $2.60 per share

China-based developer Yanlord Land Group renewed its cash offer for United Engineers (UE) in a deal that values the firm at $1.66 billion, it announced yesterday.

It is offering $2.60 cash for ordinary and preference shares - the same price lodged in an unsuccessful takeover attempt in July 2017 by a consortium led by Perennial Real Estate and Yanlord.

Yanlord holds 35.27 per cent of UE ordinary shares and 97.71 per cent of its preference shares.

UE shares closed down 1.5 per cent at $2.62 yesterday after the offer was announced, while Yanlord stock rose 0.9 per cent to $1.18.

The mandatory offers yesterday were triggered under takeover rules after one of Yanlord's wholly owned subsidiaries acquired a 51 per cent stake in the Yanlord unit that is undertaking the UE buyout.

Yanlord now indirectly owns 100 per cent of this unit after Perennial and Heng Yue Holdings sold their stakes.

UE shareholders can accept Yanlord's offers or remain invested in UE, Yanlord said yesterday.

The ordinary share offer is conditional upon the Yanlord unit and related entities holding more than 50 per cent of the total voting rights at the close of the offer.

If this condition is not met and the offer lapses, Yanlord will not be able to make another bid for UE ordinary shares for 12 months. DBS Bank is the sole financial adviser in connection with the UE offers.

A version of this article appeared in the print edition of The Straits Times on October 26, 2019, with the headline 'Yanlord revives UE takeover bid at same $2.60 per share'. Print Edition | Subscribe