Home News In print this week

UOL’s share swap agreement could unlock further value

Jeffrey Tan
Jeffrey Tan7/2/2017 10:00 PM GMT+08  • 6 min read
UOL’s share swap agreement could unlock further value
SINGAPORE (July 3): The two property developers in our Singapore Market Portfolio have performed well since they were added earlier this year. So far, our position in UOL Group has returned 10.2% while that in CapitaLand has returned 15%. As the property
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 (July 3): The two property developers in our Singapore Market Portfolio have performed well since they were added earlier this year. So far, our position in UOL Group has returned 10.2% while that in CapitaLand has returned 15%. As the property industry is expected to recover, both companies appear set to continue their positive performance. But UOL has yet another thing going for it.

On June 22, UOL announced it had signed an option agreement with Haw Par Corp — the company known for its Tiger Balm ointment. The agreement gives UOL a call option and Haw Par a put option. Upon the exercise of either option, UOL will allot and issue 27.27 million new shares to Haw Par in exchange for 60 million shares in property develop er United Industrial Corp (UIC).

UOL says the proposed transaction will enable it to acquire a “significant” minority interest in UIC, something that the lack of trading liquidity in UIC shares has prevented UOL from doing. UOL adds that it intends to consolidate its interest in UIC and achieve statutory control of the latter in the “future”.

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.