SYDNEY May 19 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)