In a disclosure to the Singapore Stock Exchange, JG Summit said it will consider methods of "unlocking value in the UIC Group’s asset base" including securitizing and/or establishing one or more real estate investment trusts for UIC’s property assets.
The trusts, known as REITs, have proven to be very popular with investors in Singapore, with several trading at around 1.6 times their book value. JG Summit also said it will seek greater representation on UIC’s board of directors.
JG Summit last month made a mandatory takeover offer to buy the remaining shares of UIC for S$1.09 per share.
The offer was made after acquiring an additional 50,000 UIC shares at S$1.09 per share, raising its stake to 30.0008 percent from 29.99 percent, triggering a mandatory tender offer under Singapore law.
Under Singapore rules, 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.