UOL / UIC / UOB

UOL / UIC / UOB: UOL to acquire UOB’s entire 9.7% stake in UIC at $2.40/sh (vs last close at $2.41), afterwhich UOL will overtake Gokongwei’s JG Summit (owns 36%) to become the largest sh/h of UIC with 42% interest. The total cost of $320.5m will be funded by bank borrowings and internal resources. UOL is not required to make a general offer, as the parties are considered acting in concert…

Within the UOB-linked circle, Haw Par and Wee Cho Yaw also own 4.9%, 0.1% direct interest in UIC r’ptively; there could be room for UOL to consolidate its sh/h further. Interestingly, we note that over the past month, both Gokongwei and Wee Cho Yaw have been nibbling at UIC shares in the open mkt at prices btwn $2.35-2.40. The battle for control over UIC may be heating up and we wonder if this move may be a precursor of further developments to come...

UIC is one of Spore’s largest office landlords in the CBD and also has indirect interests in 3 five-star hotels with ~1,880 rooms in the Marina Bay Area. It has a portfolio of more than 2m sf of office space and more than 1msf feet of retail space in Spore.