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* Lippo buys OUE stake from Malaysia's Ananda Krishnan's unit
* Lippo doubles effective stake in OUE to 88.52 pct
* Says will maintain OUE as listed firm
(Adds details, background)
SINGAPORE, March 9 (Reuters) - Indonesia's Lippo Group has taken sole control of Singapore hotel operator Overseas Union Enterprise (OUE) (OVES.SI) after buying out its partner Malaysian billionaire Ananda Krishnan in a deal valued at S$957 million ($683.6 million).
A Lippo spokeswoman said the Indonesian group raised its effective stake in OUE to 88.5 percent from around 44 percent after buying a 23.85 percent direct stake in OUE along with a 40 percent stake in a firm called OUE Realty from firms linked to Krishnan.
OUE Realty, whose other shareholder is Lippo, owned 51.2 percent of OUE, which owns hotels in Singapore, Malaysia and China.
The deal values OUE at S$11 per share and the deal is worth S$957 million, Lippo said in statement, adding it intended to retain OUE's listing on the Singapore Exchange.
Shares of OUE, whose best-known properties are the five-star Meritus Mandarin and Marina Mandarin hotels in Singapore, rose 33 percent following news of the transaction.
Lippo is an Indonesian conglomerate whose businesses range from property to pay TV; while Krishnan, Malaysia's richest man, controls several businesses including Malaysian mobile operator Maxis (MXSC.KL).
Bank of America's Merrill Lynch (BAC.N) advised Lippo in the transaction. (Reporting by Kevin Lim; Editing by Saeed Azhar)