UOL a step closer to achieving ‘statutory control’ of UIC in share swap deal with Haw Par

SINGAPORE (June 23): UOL and Haw Par have entered into a share swap deal for shares in United Industrial Corporation (UIC).

UOL says the deal will bring it closer to its aim of achieving statutory control in UIC in the future.

UOL will issue about 27 million new shares to Haw Par in exchange for 60 million UIC shares held by Haw Par.

This is based on an exchange ratio of 2.20, taking into account historical volume-weighted average share prices and net asset values and net tangible asset values as at March 31.

Upon completion of the deal, UOL’s stake in UIC will increase from 44.71% to 48.94%, becoming one of the largest owners of commercial space in Singapore .

UOL’s obligation to make a mandatory general offer for UIC for the proposed transaction has been waived by regulator Securities Industry Council of Singapore, provided its stake in UIC does not exceed 49%.

UOL says the transaction will benefit shareholders, offering greater diversification by increasing access to UIC’s commercial property portfolio in the Central Business District (CBD) area.

“The two groups together have complementary interests across residential, office, retail and hospitality segments, with geographic footprints in markets including Singapore, China and UK,” says the property group.

UOL adds that the increase in ownership will also allow it to exercise greater control over the deployment of UIC’s resources, thus enhancing UOL and UIC to leverage each other’s strengths.

The transaction will also help UOL and UIC to further align strategic interests and collaborate to acquire land banks, office and retail properties.

The proposed non-cash deal is subject to shareholder and regulatory approvals with all conditions to be satisfied by the long-stop date of Oct 31.

Shares of UOL, UIC and Haw Par were trading at S$7.68, S$3.28 and S$11.31 before the trading halt on Tuesday. — theedgemarkets.com.sg

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