United Engineers

United Engineers (UE)/ WBL: Independent Financial Adviser KPMG has issued that the UE Offers are NOT FAIR, and recommended that the Independent Directors may wish to consider advising the Stockholders and Bondholders to REJECT the UE Offers. KPMG has SOTP valuation of $4.27 to $5.16/ share. The offer from UE for WBL shareholders for $4.15/ share, conditional upon UE having received more than 50% voting rights as at the close of the offer (24 Apr 2013). The latest aggregate holding for UE and concert parties are currently at 39.5%, and the offer will become unconditional if an additional 10.5% acceptances/ acquisitions are made by the closing date. If the offer turns unconditional on 24 Apr, then the offer will be extended by 14 days. If the offer turns unconditional on 10 Apr, then UE is not obliged to extend the offer date after the 24 Apr close. As at 2 Apr 2013, Straits Trading and concert parties, has an interest of 44.0% of WBL. Purchases of 586k units were made over 1-2 Apr, at an average price of $4.23/ share.