Lippo, a major Indonesian conglomerate, has acquired the property group Overseas Union Enterprises (OUE) in a $957-million deal that raised its stake to about 88.52 percent.
The Indonesian company, through Golden Concord Asia, acquired a 44.3 percent stake at $11 per share from Usaha Tegas, a Malaysian company that engages in gaming, media, power and telecommunications.
The additional stake is also made up of a 23.85 percent direct stake and a 40 percent indirect stake in OUE, an indirect subsidiary of Usaha Tegas.
Overseas Union Enterprises is one of the leading property developers in Singapore with developments in retail, residential, commercial and hotel sectors.
Its renowned property projects include Marina Mandarin and Meritus Mandarin. OUE recently completed the makeover of the upmarket Mandarin Gallery retail centre for about $200 million. Other projects also include the additional 38-storey building at One Raffles Place and the 18-storey office building at 50 Collyer Quay.
Lippo believes that the acquisition of stakes reflects the growth and resilience of the property and hospitality market in Singapore. It also said that the company intends to maintain its Mainboard listing on the Singapore Exchange.
Additionally, the divestment in OUE resulted in the reorganisation and resignation of some of its board of directors. Lippo President Stephen Riady is now the executive chairman of OUE.
"OUE will continue to focus on its core business in hospitality, as well as to strengthen its position in the premier retail and commercial space," said Mr. Riady.