Home News Banking & finance

Potential privatisation; foreseeable consolidation?

Chan Chao Peh and Goola Warden
Chan Chao Peh and Goola Warden3/20/2020 07:00 AM GMT+08  • 6 min read
Potential privatisation; foreseeable consolidation?
Endowus, as Choo explains, is a very efficient way for investors who are aiming for a consistent 7–8% returns from a broadly diversified portfolio.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

SINGAPORE (Mar 20): UOB Kay Hian, as a listed company, has been in the news recently for another reason. UOB Bank is now its single largest shareholder, with a stake of 38.14%. Separately, Wee Ee Chao, UOB Kay Hian’s chairman and managing director, has been steadily buying up shares of the company from the open market. The most recent purchase was made on March 18, with 128,200 shares bought at $1.13474.This means Ee Chao now owns 29.74% of the company — a hair’s breadth below the 30% general offer (GO) trigger point. Is a privatisation of UOB Kay Hian in the works?

“Personally, I take the view that I am a director of the company, and I don’t own a single UOB Kay Hian share, mainly because of disclosure reasons. If you are not careful, you will trip up,” says Choo, referring to the blackout periods before and after the quarterly reporting where company directors are not to trade their own shares.

Choo says there is no clear answer if the bank, which is run by Ee Cheong, the elder brother of Ee Chao, is considered concerted parties. If so, then there is no issue of triggering a GO as the two stakes combined, at nearly 70%, is already above the next trigger threshold of 51%. “I don’t really know. Even if I ask [Ee Chao], he won’t tell me,” says Choo with a laugh.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now