UIC to take SingLand private
UNITED Industrial Corp (UIC) is offering S$762 million for the remaining 20 per cent of Singapore Land it doesn't own to take the company private.
Partly owned by Singapore's richest man, Mr Wee Cho Yaw, UIC will pay S$9.40 for each stock in Singapore Land, one of the city's biggest office landlords, according to a filing to the Singapore stock exchange yesterday.
That's an 11 per cent premium over the closing price of $8.45 on Wednesday, the last trading day before the stock was suspended.
The transaction adds to a list of real estate related companies taken private by their biggest shareholders in the past 18 months, including SC Global Developments and Pan Pacific Hotels Group. UIC said delisting Singapore Land will help manage it more effectively.
"UIC believes that privatising the company will give the UIC Group and the management of the company more flexibility to manage the business of the group, and optimise the use of its management and capital resources," the company said in the statement.
Before trading in the two stocks was halted, about 136,000 Singapore Land shares changed hands on Wednesday, five times more than the three-month average volume. The stock climbed 3.7 per cent that day, the most in 14 months.
UIC also said the offer allows Singapore Land shareholders to sell their shares easily because of "generally low trading liquidity" in the stock. UIC currently owns or controls 331 million shares in Singapore Land, according to the statement.
Mr Wee has a net worth of US$7.2 billion (S$9.1 billion), according to the Bloomberg Billionaires Index.