UE E&C

UE E&C: Second largest shareholder, Singapore Tong Teik, has again increased its stake in UE E&C from 6.98% to 7.06% on 9 Dec, snapping up 239k shares at an average $1.28 each, from the open market. This comes amidst the $1.25/share voluntary offer from Southern Capital group, where the offeror has obtained irrevocable undertakings of 74.1%, from United Engineers (68.2%) and UE E&C's chairman, Chua Hock Tong (5.9%). Meanwhile, shareholders should be expecting the offer document from the company between 13-19 Dec, along with the independent advice by IFA, Phillip Securities. With the continued buy up by Singapore Tong Teik at prices above the offer price, we do not rule out the potential angle of a counter-offer. At $1.275, UE E&C trades at 4.8x forward earnings and 1.3x P/B.