United Engineers

[greengiraffe]

http://infopub.sgx.com/FileOpen/Clarific...eID=314127

[greengiraffe]

Both UE and E&C halted today...

E&C to be divested before Charoen finalise a price for UE?

[LLS]

finally the sale of E&C, hopefully

[greengiraffe]

Based on the latest announcements on UE E&C, it appears in hind sight that UE has been systematically unlocking non core assets post the WBL takeover to position itself for a fashion parade for potential suitors in the event that OCBC/GE/Lee look forward to unlock their century old stake in the engineering conglomerate.

UE has sold its mammoth business park to Viva Trust, a REIT anchored by China based Summit Tong, in the process of selling MFS, completed and transferred Specialist Centre SPV back to OCBC/GE, selling its auto dealerships and now in the process of selling UE E&C (to me is a formality).

Previous roadside sources rumoured that OCBC/GE/Lee are looking for a sale price in excess of $5 pre-rights pre WBL, ie adjusted XR price of $3.25 for their potential divestment of UE.

Towkay Charoen has entered into a due diligence process that will expire sometime next week and appears to be no stranger to OCBC/GE/Lee.

Given a cleaner and sharpened focussed UE, OCBC/GE/Lee may well be on track to achieve their dreams on their rumoured divestment price of $3.25.

Odd Lots Vested
GG

[LLS]

UE will definitely be stripped and sold
only questions is, at what price

[tiyana]

take this and the potential cash horde from the sale of MFS tech, charoen is surely a chess master.

[sykn]

Does anyone feel that the offer price of $1.25 for UE E&C is a fair one? I'm a bit reluctant to let go as I believe that based on its past performance, its value should be more than that. But the uncertainties of holding on are substantial for minority shareholders. Any view please?

[Life is a game]

Based on my calculations of its intrinsic value, worth about 1.80 at least. If they manage to buyout at 1.25 then too bad... hope the sellers know what they are missing out. (Vested)

[sykn]

Yeah, I got around $2.10 myself; that's why I'm a bit reluctant to dispose. However the known-unknown is unpredictability after the sale is effected as we don't know what the new owner is going to do after that.

[crabcrab]

UE E&C ($1.25) - At $1.25, it is fairly valued given the current market condition... Any premium above that is a bonus to the sellers. But unfortunately it will not attract buyers if priced high.. Think from the buyers point of view of '4W1H' (eg. Why I want to takeover UE EnC? When is the right time? What will I gain from the takeover of enc at $1.25? Where is my risk level going to be? How does it benefits me and my organisation?) and you get what I mean...