(Adds background, share price move)
SINGAPORE Aug 26 Singapore's United Engineers
Ltd said on Tuesday its subsidiary WBL Corporation was
selling its luxury car business to StarChase Motorsports
(Singapore) Pte Ltd for S$455 million($365 million).
The company said the sale was part of its plan to exit from
non-core business operations.
United Engineers shares, which were halted for trading on
Monday, rose 1.45 percent in early trade and then turned flat.
On Friday, they had climbed as much as 14 percent.
News of the sale comes as Oversea-Chinese Banking Corp
is in talks with a group linked to Thai billionaire
Charoen Sirivadhanabhakdi to sell its stake in United Engineers.
OCBC, along with related companies, owns around 36 percent
of United Engineers, according to United Engineers' most recent
annual report. Buying more than 30 percent of the shares would
trigger a mandatory takeover for the company.
OCBC said on Thursday that the discussions were at a
WBL, which is 67.6 percent owned by United Engineers,
imports and distributes luxury cars across Singapore, Malaysia,
China, Thailand, Indonesia and Vietnam.
The automotive business generated an operating profit of
S$6.23 million in the first half of 2014 on revenues of S$446.84
(1 US dollar = 1.2511 Singapore dollar)
(Reporting by Rachel Armstrong; Editing by Edwina Gibbs and