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United Engineers to divest off luxury car business for US$365m
Corporate Digest | 27 August 2014
By:

Yes, I believe that you have heard news that Charoen is in talks to acquire United Engineers. However, before that is even taking place, United Engineers has in fact divested its subsidiaries Wearnes Automotive and Associated Motor Industries for $455 million.

If you recall, just last year United Engineers whose businesses include real estate and construction, purchased Wearnes Automotive and Associated Motor Industries parent company WBL Corp for $725 million including debt.

  • United Engineers’ indirect 67.6 percent owned subsidiary, WBL Corporation and WBL’s associated company, Rank PT O’Connor’s Co, have entered into agreements to dispose the entire issued and paid-up share capital of Wearnes Automotive and Associated Motor Industries, as well as certain assets related to the automotive business and trade marks.
  • StarChase Motorsports has agreed to purchase United Engineers’ automotive arm for a consideration of $455 million.
  • The disposal is in line with United Engineers’ strategy of streamlining its businesses and proceeds will be used to repay borrowings.

However, the much-anticipated question if all these would bode well for the shareholders of the parties involve remains?

And would the present shareholders of United Engineers agree with the sale of its luxury car business for $0.47 per share ?


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