Australia's UGL gets only one bid in planned $1.1 bln property arm sale -source

SYDNEY Sun May 18, 2014 8:59pm EDT

SYDNEY May 19 (Reuters) - Australian engineering and property management firm UGL Ltd received only one final bid for its real estate arm, leaving question-marks over its long-standing plans to sell the unit for about A$1.2 billion ($1.12 billion), a source told Reuters on Monday.

Debt-laden UGL had expected four bids from private equity companies for property services arm DTZ by a deadline of May 16, the source said. The only confirmed final bidder was TPG , the source said, without disclosing a bid price.

The source, who could not be identified because the process was not public, said the sale of DTZ under the current plan may now be in doubt.

UGL was not immediately available for comment, while TPG declined to comment.

Shares in Sydney-based UGL fell almost 10 percent to a three-week low of A$6.80 in early trading.

The company has struggled with high debt levels and falling profit at its main engineering services division. A year ago it said it planned to dispose of DTZ in a public share sale.

In February, DTZ helped lift UGL's net profit for the six months to December 31, 2013, prompting UGL to say it might sell DTZ in a private sale instead.

Pulling the planned sale in its current form could see the company pressing ahead with its original plan for a share market listing as the Australian market for initial public offerings continues to gather momentum.

($1 = 1.0680 Australian Dollars) (Reporting by Byron Kaye; Editing by Kenneth Maxwell)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.