Edging out other suitors including SingHaiyi Group Ltd and KKR & Co., Perennial Real Estate Holdings Ltd is said to have been chosen by the largest shareholders of United Engineers Ltd to acquire the property group, reported Bloomberg citing people with knowledge of the matter.
In fact, an agreement may be reached out as soon as this month for the century-old company, which has a market value of S$1.7 billion, said one of the people, who declined to be named as the information is private.
United Engineer’s website shows that a buyer would gain a property portfolio that includes shopping centres such as Rochester Mall, mixed-use developments like UE BizHub City, condominiums as well as hotels and serviced apartments.
In January, the biggest investors of United Engineers, Oversea-Chinese Banking Corp. (OCBC) including its insurance unit Great Eastern Holdings Ltd., said they are reviewing their stakes in the property group and its engineering subsidiary WBL Corp.
Prior to proceeding with an offer, Perennial – which owns stakes in projects such as the Chinatown Point retail and office complex as well as AXA Tower – asked for clarification from regulators on the procedures for a simultaneous acquisition of the investors’ holdings in the two companies, revealed one of the people.
Notably, OCBC, Great Eastern and the financial institution’s founding Lee family own over 30 percent of United Engineers. Under Singapore rules, acquiring their shareholdings will trigger a mandatory takeover offer for the property group.
The people noted that a deal may be delayed or fall apart, bringing the possibility of the emergence of another buyer.
This article was edited by Denise Djong.
