United Engineers

[Tiggerbee]

seems like this counter eroded value a little more after the x-right date

It's expected as the sellers and short sellers are holding back before the rights issue date. After ex rights, the restriction is lifted. Be prepared for this stock to be sold further down as it's over laden with debt plus it's facing severe headwinds in the property sector.

[Stockerman]

What is the RNAV ? Profits from Eight Riversuites Condo at Whampoo will flow in next quarter , plus Austville EC has been fully sold...

[ngcheeki]

After the acquisition of WBL, the immediately action should be to divest its technology division, IMO.

You're right on the divestment of their technology division. However, may be now is not the right time as their technology division is making loss and may not be able to fetch a good price though.

United Engineers, the engineering company that helped build Singapore’s Shangri-la hotel, is seeking a buyer for two units it purchased as part of the acquisition of c this year, said two people with knowledge of the matter.

The company plans to sell its stakes in Nasdaq-listed Multi-Fineline Electronix Inc. and Singapore-traded MFS Technology, both controlled by WBL, said the people, who asked not to be identified as the deliberations are private. The two companies have a combined market value of $439 million, data compiled by Bloomberg show.

United Engineers bought a majority stake in WBL for US$725 million in May, and now owns 96% of the China-focused property developer and distributor of Jaguar, Bentley and Bugatti cars. Multi-Fineline and MFS both specialize in the design and manufacture of flexible printed circuits, according to WBL’s website.

“The group is presently undertaking a strategic review in relation to WBL and as part of its on-going strategies, the group may from time to time review investment and divestment opportunities as well as streamline its activities and businesses,” United Engineers Chief Financial Officer Lester Wong said in an e-mailed response to questions.

United Engineers, which owns 61.1% of Multi-Fineline and 77.3% of MFS Technology through WBL, may seek $300 million to $400 million for its stakes, one of the people said. WBL in December said it was exploring options for its Multi-Fineline holding.

Multi-Fineline posted a third-quarter loss of US$31.5 million as sales tumbled. The company’s shares have fallen 23% this year, cutting its market value to US$375 million ($40.3 million). MFS Technology has a market capitalization of $81.7 million after declining 8.1% in Singapore trading this year. The company’s third-quarter profit dropped 67% from a year earlier to $1.3 million, data compiled by Bloomberg show.

United Engineers in June proposed a plan to raise about $490 million by selling shares to existing investors, allowing the company to cut debt that reached $2.5 billion on March 31.

http://www.theedgesingapore.com/the-dail...chase.html

[pianist]

It's expected as the sellers and short sellers are holding back before the rights issue date. After ex rights, the restriction is lifted. Be prepared for this stock to be sold further down as it's over laden with debt plus it's facing severe headwinds in the property sector.

hmm..didn't know about such short-selling trading restriction..thanks..

[Underdogger]

If we net off the debt of $2.5bil from its total asset base of $6bil, we still have net asset of about $3.5bil.

Based on the current market cap of $1.12bil, the upside potential will be around 3 times the current price?

How come people is selling down ? strange

[greengiraffe]

I have been dead negative since UE's pricy takeover of WBL. However, given the current deep discount to adjusted book value of $2.69, whatever mistakes should have been discounted. At current levels, the risks appear low even for trading purposes taking into account their costly M&A.

One should never forget that UE has strong substantial holder backing in rock solid OCBC Gp and they will be urged to embark on asset unlocking strategies with permitted mkt sentiment in order to attempt to narrow the asset discount gap.

UE's asset bases are largely in countries with good corporate governance and even wbl's exposure in China is likely to have good buffer with its good track record there. Hence, it will be a matter of time when its asset values will be realised again.

[Stockerman]

Is $2.69 the RNAV ? If not, what is the estimate for RNAV ? Tks

[ngcheeki]

Is $2.69 the RNAV ? If not, what is the estimate for RNAV ? Tks

If I'm not wrong, the $2.69 is the NAV of UE after afer adjust for max right shares issue. You may like to refer to the UE right OIS for more information.

[Stockerman]

Yes I know it is the adjusted NAV after rights. But is it also the RNAV ? Many tks

[pianist]

is nta the same as nav? i noted is nta is only slightly above 2.