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UOB clears way for sale of 49% stake in UO Land

United Overseas Land Ltd has completed the sale of exchangeable bonds & shares in its parent company, United Overseas Bank Ltd, paving the way for the bank to sell down its 49% holding in the property company without an unwanted investor getting its foot in the door at the bank.

United Overseas Land’s sale to institutional investors this week brought it $S506.22 million for its bonds and $S284.15 million for its shares in the bank.

The Singapore Government requires the country’s banks to sell out of non-finance interests by 2006.

The Government-controlled Temasek Holdings Pte Ltd tried to buy the bank’s interest in the property development & investment company twice earlier this year, offering $S710 million, but was rejected.

Earlier story:

6 May 2004: Temasek bids for United Overseas Land

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Temasek bids for United Overseas Land

Singapore Government-controlled Temasek Holdings Pte Ltd has offered to buy United Overseas Bank Ltd’s 49% stake in United Overseas Land Ltd for $S710 million, or alternatively the 259.7 million preferential shares the bank put up for sale on 26 April.


Temasek, through Tazwell Pte Ltd, has offered $S2.06/share & S81c/warrant. Its offer will lapse on Tuesday 11 May.


United Overseas Land has $S1.6 billion of investment properties & another $S325 million of properties & investments being prepared for resale. It also has a listed subsidiary, Hotel Plaza Ltd, which owns 12 hotels in Singapore, Malaysia, Vietnam, Burma, China & Australia.


The bank’s selldown arises from a Government move, slowly coming into force, to separate banks from non-financial services assets such as property companies.


The bank said it was considering the offer. If Temasek is successful, its bid would lead to a full takeover offer. Temasek’s offer was at an 8% premium but in 2 days the price has risen to $S2.19/share.


Websites: United Overseas Land

Hotel Plaza


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