Oversea-Chinese Banking Corp (OCBC) is in talks to sell its stake in United Engineers Ltd (UE), a Singapore property and construction company, to Thai billionaire Charoen Sirivadhanabhakdi, according to media reports quoting sources familiar with the matter.
The discussions are at an early stage, said one of the sources, who asked not to be identified as the deliberations are private.
OCBC, its insurance unit and the bank’s founding Lee family together own 34.1 percent of UE, according to a Bloomberg report.
Acquiring more than a 30 percent stake would trigger a mandatory takeover offer for UE under Singapore regulations.
UE shares were halted from trading yesterday after they jumped the most in more than four years, prompting Singapore’s stock exchange to ask the company to explain the move.
With trading volume of more than five times the six-month daily average, the stock was up 7.4 percent to $2.46 before the suspension.
Selling the stake would help OCBE bolster capital after its US$5 billion takeover of Hong Kong’s Wing Hang Bank this year.
Farah Wahida, Editor of PropertyGuru Malaysia, edited this story. To contact her about this or other stories email farahwahida@propertyguru.com.my
