Oxley announced it bought United Engineers shares. 7% stake, which is likely to cause the current Offer from Yanlord to fail because Oxley (& perhaps friendly parties) ain't subscribing for it and so Yanlord cannot do compulsory acquisition. .
Bought at $2.654 cents a share, no wonder trading price has been higher than offfer price of 2.60.
The question is , what does Oxley intend to do with its stake?
1. Singapore property sentiment has turned positive and who has the largest residential landbank today? Oxley! It bought the landbank this year, which is great timing. Can build 2,833 units (S$3.03b GDV).
2. Royal Wharf project (London) has hardly any default despite Brexit. The deliveries are accelerating and cashflows will be awesome.
3. Oxley's 2 hotels in Stevens Road, Singapore, have been completed. They should open soon!