UE E&C

StewardLittle
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10 years 1 month ago #19463 by StewardLittle

Replied by StewardLittle on topic UE E&C

infopub.sgx.com/FileOpen/AnntInRelationT...cement&FileID=288172

ANNOUNCEMENT IN RELATION TO QUERY REGARDING TRADING ACTIVITY

UE E&C Ltd. (the "Company") refers to the query on 24 March 2014 from the Singapore Exchange
Securities Trading Limited ("SGX-ST"), regarding the unusual price movements in the shares of the
Company.
The Company wishes to announce that it has been informed that its controlling shareholder, United
Engineers Limited, is currently in discussions with a third party in connection with the sale of its
shareholding in the Company, which may or may not lead to a general offer for the shares of the
Company. The Company understands that these discussions remain ongoing and no binding
agreement has been reached. As such there is no assurance that the transaction will actually
proceed.

Save as stated above, the Company is not aware of any other possible explanation for the trading
activity.

The Company confirms that it is in compliance with the listing rules of the SGX-ST and, in particular,
Rule 703 of the Listing Manual.

Shareholders are advised to refrain from taking any action in respect of their shares in the Company
which may be prejudicial to their interests, and to exercise caution when dealing in the shares of the
Company. The Company will update shareholders in due course when it becomes aware of any
material developments.

BY ORDER OF THE BOARD

Tan Ching Chek
Company Secretary

24 March 2014

SGX 24/3/14 Announcement Page

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StewardLittle
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10 years 1 month ago #19464 by StewardLittle

Replied by StewardLittle on topic UE E&C

StewardLittle wrote: This GEM is being sold and may receive a General Offer.

The Company wishes to announce that it has been informed that its controlling shareholder, United Engineers Limited, is currently in discussions with a third party in connection with the sale of its shareholding in the Company, which may or may not lead to a general offer for the shares of the Company. The Company understands that these discussions remain ongoing and no binding agreement has been reached. As such there is no assurance that the transaction will actually proceed.

At current prices, the yield is still a respectable amount of 5.5% so it seems strange to be selling at this price. The offer price must be attractive enough for UE to sell off it's 60%++ stake. Calculating the risk and reward, one should be buying instead.

This is the link to SGX.com announcement infopub.sgx.com/FileOpen/AnntInRelationT...cement&FileID=288172

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lotustpsll
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10 years 1 month ago #19465 by lotustpsll

Replied by lotustpsll on topic UE E&C

Thanks.

if it materialises, the acquirer will be buying over a quality company with solid business model and strong balance sheet. Just hope that a fair price is struck.

Your pick on this stock is sublime!

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lotustpsll
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10 years 1 month ago #19466 by lotustpsll

Replied by lotustpsll on topic UE E&C

If assuming we buy this stock at sgd1.30, bearing in mind it is cum with 7 cents dividend, the pe (trailing basis)and adjusted pe (taking into account of its cash holdings) will be at 5.5 and 3.2 respectively.

I agree with StewardLittle that it is still a buy.

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