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WBL earnings are not consistent either.1Q red another Q green.
I think buy Straits Trading is better.
.no good impact on ue share price.
keep dropping.
United Engineers has raised its offer for WBL Corporation to $4.50 a share, up 35 cents a share or 8.4 per cent.
The latest price is final and there will be no more increase, UE said in a press release issued on Thursday.
UE had first launched its takeover bid for WBL, a technology, automotive and property conglomerate, at the end of January.
It had offered $4 a share, over Straits Trading Company's previous offer of $3.36 a share
.this counter is dead ??
As at 23 Apr, UE controls 39.64% of WBL. Straits Trading Co (STC) which owns 44.58% stake in WBL, let its own takeover bid lapse in Mar, leaving UE as the only contender. STC has highlighted there was little reason to accept UE's offer. Independent financial adviser KPMG had recommended shareholders not to accept UE's offer as it was " not fair from a financial pt of view" , and gave a SOTP valuation of $4.27-5.16/share for WBL.
J.P. Morgan wishes to announce, for and on behalf of the Offeror, that the Closing Date of the Offers will be extended from 5.30 p.m. (Singapore time) on 24 April 2013 to 5.30 p.m. (Singapore time) on 10 May 2013 or such later date(s) as may be announced from time to time by or on behalf of the Offeror (the “Extended Closing Date”). Acceptances received after 5.30 p.m. on the Extended Closing Date will be rejected.
United Engineers (UE) on Tuesday kicked off its mandatory offer for WBL Corporation at S$4.15 a share - up from S$4 - even as rival Straits Trading Company allowed its offer to lapse last Sunday.
This came after its shareholders gave the green light at an extraordinary general meeting (EGM), and a few of the concert parties converted their convertible bonds into new WBL shares, bringing the concert group's share of WBL from 38.3 per cent to 39.54 per cent.
UE said that 97.02 per cent of its shareholders voted in favour of the firm's takeover bid of WBL.
On the same day, certain members of the concert parties behind the UE bid - comprising OCBC, Great Eastern Holdings and OCBC's founding Lee family - converted S$12.8 million of convertible bonds into 5.6 million new WBL shares at S$2.29 each
Better than expected. United Engineers announced FY12 results above our and consensus expectations. Revenue came in SGD595.7m, down 50%, and net profit was at SGD87m, down 70%. Excluding revaluation gains on investment properties, core profit would have came in SGD49.3m, which is broadly in-line with expectations. The Group has announced a final dividend of 10cts a share, which implies a 3% yield. We maintain BUY on the counter with a TP of SGD4.02/share.
Earnings largely driven by investment property division. Apart from the revaluation gain, FY12 offered a decent run on hospitality operations, where core operating profit came in SGD52.1m. We expect this to continue to improve as United Engineers will be launching their hospitality operation (251 rooms) in UE BizHub East in 2Q13. In addition, we expect the rise of Star Vista’s retail traffic will inherently flow to The Rochester.
Property earnings to flow through. In the property development side, the Group will be focusing on the execution of 8 Riversuites, and Austville Residences, which are 50% and 100% sold respectively. As construction will commence this year for both projects, we expect approximately SGD19m of pre-tax profit will be recognised from 8 Riversuites, while Austville Residences will be fully recognised in 2014.
Balance sheet is still manageable. 79 Anson’s acquisition will be incorporated into the balance sheet next quarter. We expect net gearing to increase to 0.93x to account for additional borrowings. The Group has drawn out SGD300m term-loan so far, and we expect remaining portion will be paid out by internal financing. As for WBL counter offer, we reiterate our stance that Straits Trading will counterbid.
Reiterate BUY. We maintain our positive stance on United Engineer turning into an income generative Company, and at the same time continue to reward its shareholders well. Maintain Buy with target price of SGD4.02, pegged to a 25% discount to RNAV.
Source: Maybank Kim Eng Research - 01 Mar 2013
These 3 projects will boost United Engineer's growth in 2013
It's up for a 'transitional development' this year.
In a release, Mr Jackson Yap, United Engineer's Managing Director and Chief Executive Officer said “In FY2012, we made significant progress in our drive to transition to more sustainable and stable businesses.
These generate steady cashflows and help to smoothen out the volatility associated with property development profits. We have been actively growing our stable recurrent income base by acquiring assets such as 79 Anson Road as well as building our Park Avenue brand hospitality business.
The commencement of the integrated business park and hotel operations at UE BizHub EAST is set to add to our recurrent income business. The recently announced bid for WBL Corporation Ltd is a major thrust by the Group to grow via merger and acquisitions.
This will be a transformational development for the Group.”
“In the year ahead, we will focus on executing our major development projects, namely – 8 Riversuites, Austville Residences and Orchardgateway. We will continue our efforts to broaden our recurring income base in order to generate steady and sustainable cashflows,” he added.
United Engineers' net profit for the fiscal year ended Dec 31, 2012 dived 73 per cent year on year to S$72.16 million from S$269.46 million.
Turnover halved to S$595.74 million from S$1.19 billion a year earlier, in the absence of revenue from property sales following the completion of The Rochester and Park Central @ AMK.
Earnings per share were 24.3 cents, down from 97.3 cents a year ago.
The board has recommended 5 cents per share in first and final cash dividend, and special dividend each, in addition to a 7.5 cents per preference share dividend.
Going by past EGMs, STC (together with Aberdeen and Third Ave) has enough shares to block OCBC. As such, there is very little incentive to improve UE's bid of $4.00 for WBL. It is reasonable to assume that STC is already running WBL now, judging by the fact they fired the people they do not like.
In addition, Aberdeen is buying WBL at more than $4.00 on behalf of their client's account. The present market price of WBL almost guarantee UE's bid will fail in its present form.
Perhaps what is amazing about all these developments is the fact that STC managed to convince Aberdeen and Third Avenue to swap their WBL shares for STC shares.
UE will be crossing $$3.53 come Mon or Tue.
Octavia ( Date: 31-Jan-2013 12:04) Posted:
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STC May Counter United Engineers & apos WBL Bid - CIMB reported.
ocbc as banking group has to divest non-banking biz., traditional banking biz on savings/loans may be challenging in low interest environment. Buying and selling companies make more waves and currents...F& N, WBL etc...
There may be more M& Acq to come as other financial institutions join in...SGX will regain > $8 when market heats up....
LKY(LimKaYew) ( Date: 31-Jan-2013 00:18) Posted:
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UE has the backing of OCBC and major shareholder of the WBL ...
UE has a good cash revenue ..
Unless there is price war bidding, and UE keeps increasing its biding price then it will need to borrow and its value will be affected ..
As for now at $4, no prob for UE ...
Wonder we can get on board at 3.32?
LKY(LimKaYew) ( Date: 31-Jan-2013 00:18) Posted:
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i picked UE. Tml i'll jeep more. Have u ever think of why OCBC uses UE to make this move rather than themselves? Think along that line perhaps... :D
3 Co are involved here ... UE, WBL & St Trading ...
Which one which we pick to invest at this moment?
infancybird ( Date: 30-Jan-2013 13:53) Posted:
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United Engineers Ltd (UE), a property, engineering and construction group, said Wednesday it intends to launch a takeover for WBL Corporation Ltd (WBL) in an all-cash pre-conditional voluntary general offer that values WBL at close to S$1.1 billion.
The offer price at $4.00 per share rivals an earlier offer by Straits Trading Company (STC), which offered S$3.41 in cash or 1.07 of new STC shares for WBL share.
The offer by UE's subsidiary, UE Centennial Venture Pte Ltd, is for the remaining 61.7 per cent of WBL, or 167.6 million shares, and all outstanding convertible bonds in WBL, that the offeror and its concert parties do not own.
The concert parties comprising the OCBC Bank Group, the Great Eastern Group, the Lee Group, and directors of the offeror, own a combined 38.3 per cent stake in WBL.
Big M& A news....UE is offering $4.00 to take over WBL. Now a fight is starting b/w St trading and UE.
LKY(LimKaYew) ( Date: 26-Jan-2013 01:48) Posted:
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1 year pay 1 dividend only ...xian