United Engineers (UE): proposes a spin-off of its engineering and construction business on the SGX Mainboard. The listco, to be named UE E&C, is expected to undertake an IPO comprising new shares, and sale of vendor shares.
The E&C business is currently owned by UE (92% stake) and CEO, Chua Hock Tong (8%). Post IPO, UE will retain a 60% stake, or 57% stake if an over-allotment option is exercised by OCBC.
OCBC is the issue mgr…
The spin-off of the E&C Business will allow UE to streamline its operations and focus on growing its property development, property asset management and leasing, and environmental and water related businesses, in Spore, Asia and the Middle East.
Mgt’s preliminary assumptions indicate UE may receive net proceeds of $17.9m, to be used for investments, debt repayments, and working capital. Gains on disposal should increase group NTA to $3.46 from $3.33.
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