SINGAPORE (Aug 4): Oxley Holdings has acquired a 7.11% stake in United Engineers which has received a takeover offer.

But Oxley says it will not be making a competing offer for UE.

The property group announced this morning it scooped up 45.3 million UE shares at $120.3 million in the open market.

This works out to an average transacted price of $2.65 for each UE share.

Early last month, a consortium led by Yanlord Land Group and Perennial Real Estate acquired a 33.5% stake in UE at $2.60 per share and a 10% stake in WBL Corporation for $2.07 per share.

The move triggered a mandatory takeover for UE.

Oxley says the acquisition was undertaken by the group as part of its investments in income generating assets, and is in line with the investment objective of the company.

UE and its subsidiaries have key business activities in property rental and hospitality, property development, engineering and distribution, as well as manufacturing. It also has a portfolio of assets including investment assets which generate steady income.

Shares in Oxley and UE closed at 58 cents and $2.72 respectively on Thursday.