UOB yesterday took a big step towards reducing its stake in United Overseas Land UOL with a combined share placement and exchangeable bond. UOB currently owns 35% of UOL and by law must reduce this holding down to below 10% by July 2006.
The share placement will take the form of a special dividend of UOL shares to be paid out to UOB shareholders. For every 1,000 shares of UOB they own, they will receive 100 UOL shares. The pricing of the trade will have to be approved at an EGM before the distribution can take place. The dividend will comprise 153.8 million shares and represents 19% of UOL.
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