SINGAPORE (Aug 17): CEO Ching Chiat Kwong of Oxley Holdings has continued scooping up shares of United Engineers despite saying he does not plan to make a competing offer.

See: Oxley acquires 7.11% stake in United Engineers but will not be making competing offer

UE is in the midst of a takeover bid by a consortium led by Perennial Real Estate Holdings and Yanlord Land Group.

In a Thursday morning filing, Ching disclosed that Oxley had on Wednesday acquired, through open-market purchases, shares of UE, resulting in Oxley holding 10.43% of the total number of issued shares, excluding treasury shares and subsidiary holdings of UE.

On Tuesday, SAC Capital, the independent financial adviser to UE’s independent directors, said in a report that it considered the consortium’s offer price of $2.60 per share “fair and reasonable”.

In a Wednesday report, brokerage house Lim & Tan Securities says it does not expect the takeover offer to succeed as there is still the possibility of a counter bid from Oxley.

Lim & Tan notes that UE’s market price has stayed consistently above the $2.60 offer price since the takeover announcement.

In addition, the offer price values UE below its price to book at 0.89x.

There is also potential for the consortium to create value over the middle and longer term.

As at 11.17am, UE shares are trading at $2.69.

See: Lim & Tan expects takeover bid to fail, keeps United Engineers at ‘hold’