Overseas Union Enterprise

[winston]

Update: Lippo takes control of Singapore's OUE

SINGAPORE - Indonesia's Lippo Group has taken sole control of Singapore hotel operator Overseas Union Enterprise (OUE) after buying out its partner Malaysian billionaire Ananda Krishnan in a deal valued at S$957 million (US$683.6 million).

A Lippo spokeswoman said the Indonesian group raised its effective stake in OUE to 88.5 per cent from around 44 per cent after buying a 23.85 per cent direct stake in OUE along with a 40 per cent stake in a firm called OUE Realty from firms linked to Krishnan.

OUE Realty, whose other shareholder is Lippo, owned 51.2 per cent of OUE, which owns hotels in Singapore, Malaysia and China.

The deal values OUE at S$11 per share and the deal is worth S$957 million, Lippo said in statement, adding it intended to retain OUE's listing on the Singapore Exchange.

Shares of OUE, whose best-known properties are the five-star Meritus Mandarin and Marina Mandarin hotels in Singapore, rose 33 per cent following news of the transaction.

Lippo is an Indonesian conglomerate whose businesses range from property to pay TV; while Mr Krishnan, Malaysia's richest man, controls several businesses including Malaysian mobile operator Maxis.

Bank of America's Merrill Lynch advised Lippo in the transaction.

Source: REUTERS

[LenaHuat]

The Lippo group is stealthily building mountains, a little too much for my comfort.

[Blackjack]

Care to share why?

[ichew]

proposing a 5-for-1 stock split ...

[winston]

Dropped 25% !

Anybody following this counter ? Why the big drop ? Stock-split ? But there was no Ex-Bonus comment.

[iam802]

Singapore's OUE shareholder to raise up to $300 mln

SINGAPORE, June 14 (Reuters) - A key shareholder of Singapore hotel operator Overseas Union Enterprise plans to raise between $246-$300 million by selling shares and convertible bonds, a term sheet seen by Reuters showed.

Morgan Stanley has been appointed as joint bookrunner, joint lead manager, joint underwriter and joint issue manager for the deal.

In March, Indonesia's Lippo Group took sole control of Overseas Union Enterprise after buying out its partner, Malaysian billionaire Ananda Krishnan. in a deal valued at S$957 million.

http://www.xe.com/news/2010-06-14%2007: ... htm?c=1&t=

[eauyong]

June 15, 2010, 1.05 pm (Singapore time)

OUE drops plan for convertible bonds

SINGAPORE - Overseas Union Enterprise, a Singapore-listed property and hotel firm, said on Tuesday it will not go ahead with a proposed convertible bond sale due to current market conditions.

It also said its shareholder, Golden Concord will sell 18 million OUE shares at $11.50 (US$8.23) a share. -- REUTERS

[ichew]

seems like response not too good

OUE initially wanted to
(1) place out 52 million sh by controlling shdr at $11.50 to $14
(2) do a $200 million convertible note

now
(1) can only find investors to buy 18 million shares priced at lowest $11.50
and
(2) cancelled convertible notes

mebbe they shld have split the shares to lower value first b4 doing all these ...

[winston]

There's something I dont quite understand. Why placed out the shares at such a huge discount of 28% ? Why so desperate to get out at such a huge discount ? Dont they have a stable business and assets ?

===============================================

BUSINESS TIMES - Indonesia's Lippo Group placed out 18 million shares in property and hotel firm Overseas Union Enterprise at S$11.50 ($8.26) a share -- a far smaller amount than earlier flagged and at the bottom of the indicative price range.

[ichew]

There's something I dont quite understand. Why placed out the shares at such a huge discount of 28% ? Why so desperate to get out at such a huge discount ? Dont they have a stable business and assets ?

mebbe lippo wants to pare down their own debt?
their stake in OUE is not cheap
the deal costs them $957m
since their cost is $11, they earn $9m gross from this placement