UE E&C

UE E&C: In the midst of obtaining shareholders' approval for its voluntary conditional offer by Southern Capital group in an EGM scheduled to be held on 28 Nov. United Engineers has given its undertaking to sell its entire 68.2% stake in the company. We note that share price of UE E&C has been rising to the current $1.275, indicating that there may be a potential for a counter-offer. From SGX disclosures, we note that since the announcement of the voluntary offer on 3 Oct, Singapore Tong Teik acquired shares at an average $1.257/share, raising its stake from 4.9% to 6.1%.