United Engineers Ltd said a precondition for the merger of two of its units failed to get the required shareholder approval at an extraordinary general meeting held Feb. 23.
The company was seeking authorization for UE Centennial Venture Pte. Ltd.'s acquisition of additional units in WBL Corp. Ltd. held by United Engineers' majority shareholder Yanlord Perennial Investment (Singapore) Pte. Ltd. As a result, UE Centennial will not be launching its planned S$2.07-per-share cash offer for all the issued capital that it does not already own in WBL. The offer period expired Feb. 23.
Votes cast against the resolution totaled 67.44%, including Oxley Holdings Ltd's, which owns a 15% stake in United Engineers.
Oxley CEO Ching Chiat Kwong said the company's board agreed to vote against the proposal based on their own analysis, according to a Feb. 24 report by The Straits Times.
United Engineers said it will continue to explore other growth opportunities in property development and asset management alongside Yanlord.