Divestment talks the culprit behind UEL’s unusual share price movement

Discussions with third parties are still ongoing.

Mainboard-listed United Engineers was slammed with a query regarding its unusual price movement on Friday. Today, the company attributed the surge to the fact that its controlling shareholders are currently in talks with third parties interested in acquiring UEL’s shares.

UEL revealed that talks are ongoing between its controlling shareholders, OCBC and Great Eastern Holdings, and potential purchaser TCC Top Enterprise Limited, which is owned by Thai tycoon Charoen Sirivadhanabhakdi.

“The Company understands that these discussions are ongoing and TCC has approached the Company to conduct due diligence on the Company and its subsidiaries. There is no assurance or certainty that any transaction or agreement will be entered into pursuant to these discussions,” stated UEL.

UEL also noted that it is mulling the sale of its shares in subsidiary UE E&C, stating that the company is in preliminary talks with a third party but that no binding agreement has been reached.

The company also revealed that it is mulling the sale of various non-core businesses, and that a number of third parties have expressed interest in acquiring these assets.