Yanlord hikes up cash offer in UE to $2.70 per share

It bought 6.15% in UE, increasing its stake to 41.42%.

Yanlord has raised its cash offer for United Engineers from $2.60 apiece to $2.70 and has acquired 6.15% of the latter’s shares, according to an SGX filing.

Yanlord’s stake in UE is now at 41.42%.

The China-based property had entered into separate sales and purchase agreements with Perennial UW and Heng Yue to acquire 45% and 6% of their stakes in the entity, respectively, which collectively holds 35.27% in UEL. The deals amounted to $229.7m, and was funded by a combination of internal resources and debt.

Analysts earlier noted that its previous offer price of $2.60 was slightly below UEL’s closing price of $2.62 on 25 October. The price is also at a 16.7% discount to UEL’s NAV/share (as at 30 June 2019), implying a takeover offer at 0.83x PB.