SINGAPORE (Dec 27): Yanlord Investment (Singapore), a wholly-owned subsidiary of China-based property developer Yanlord Land Group, announced Friday that it now owns, controls or has agreed to acquire 90.27% of United Engineers (UEL) as at 5pm on Dec 26.

This means that UEL’s publicly held shares has fallen below the 10% threshold. Singapore listing rules require that at least 10% of a company's shares remain in free float to maintain listing status.

As UEL has lost its free float, the Singapore Exchange (SGX) will suspend the trading of UEL shares at the close of the offer on Dec 30.

Yanlord reiterated on Friday that it will delist UEL.

The group added that it has no intention of undertaking or supporting any action to satisfy the free float requirement, or for the trading suspension to be lifted.

“UEL shareholders who may not want to hold shares in an unlisted company should consider accepting the offer or exercising their rights under Section 215(3) of the Companies Act,” Yanlord added in a filing to SGX.

Yanlord has offered to pay $2.70 for each UEL share, valuing the property firm at $1.72 billion.

In the offer document, Yanlord had said it did not intend to delist the company but that it could re-evaluate its position later.

However, the group last week signalled that it will delist UEL should its free float fall below the listing threshold.

See: Yanlord has change of mind; says it plans to delist United Engineers

As at 11.27am on Friday, shares in Yanlord Land are trading 2 cents higher, or up 1.7%, at $1.21.