The offer was made by JG Summit after acquiring an additional 50,000 UIC shares at S$1.09 per share, raising its stake to 30.0008 percent from 29.990 percent, triggering a mandatory tender under Singapore law.
Under Singapore law, a buyer is required to make a general offer for shares in a company if it has accumulated more than 30 percent of that company.
UIC’s main asset is its controlling stake in Singapore Land Ltd., which is one of the biggest office landlords in the city-state’s central business district.
JG Summit, on the other hand, has investments in property development, retail, food manufacturing, banking, petrochemicals, telecommunications, and the airline business.
Should the offer succeed or become unconditional, which means JG Summit’s stake breaches 50 percent, JG Summit will also be required under Singapore rules to make a separate takeover offer for SingLand.
The offer for SingLand will be at S$5.50 per share.
SingLand’s investment portfolio include commercial properties such as the UIC Building, Stamford Court, West Mall, SGX Centre2, Singapore Land Tower, Clifford Centre, The Gateway, Abacus Plaza and Tampines Plaza, Marina Square and Novena Square as well as residential property developments, including The Belleforte, The Paterson and Stevens Loft.
The UIC Group owns an aggregate of 298.73 million shares, representing 72.4 percent of the issued and paid-up share capital of SingLand.
UIC began its corporate existence as a detergent manufacturer in 1963. Today, it has become a conglomerate with its core business in property investment and development. Its other business interest includes information technology.<