JG Summit bought an initial 23 percent stake in UIC for S$310 million 1999 from the Salim group of Indonesia. Last month, it bought additional 50,000 shares of UIC at S$ 1.0 each increasing its stake in the firm to more than 30 percent.
Under Singapore rules, investors accumulating more than 30 percent of publicly-listed companies are required to make a takeover bid.
JG Summit, through Summit Top Investments Limited, is now making a mandatory conditional cash offer to the rest of UIC shareholders. For each offer share, the Group is offering S$ 1.09 in cash.
In a prospectus for UIC shareholders, the JG Summit Group said it will unlock the value in the UIC Group’s asset base through various means such as adopting an " asset-light" strategy involving, among others, the possibility of securitizing and or establishing one or more real estate investment trusts (REIT) for the UIC Group’s property assets.
The JGSH group added it will also review the manpower resources of the UIC Group having regards to the JGSH Group’s strategy for the UIC Group and normal commercial considerations.
In addition, the holding company said it also intends to seek greater representation on the board of directors of UIC.
Meantime, the Group said it will exercise its right to compulsory acquire all UIC shares from those who have not accepted the offer (dissenting shareholders) in the event that it gets valid acceptances of not less than 90 percent of the UIC shares. In this case, the Group said it will delist UIC from the Singapore Stock Exchange.
JG Summit is one of the largest conglomerate in the country with interests in real estate, retail, food, telecommunications, banking, airlines, and petrochemicals.
UIC, on the other hand, is an investment holding company listed on the Singapore Stock Exchange. The principal activities of the UIC Group consist mainly of development of properties for investment and trading and investment holding, property management and consultancy and investment in hotel and retail centers.
UIC is the holding company of Singapore Land (SingLand). It holds 72.42 percent stake in SingLand which is among Singapore’s biggest office landlords.
