The UOL Group Limited (“UOL” or the “Company”) has, through its newly incorporated associated company, United Venture Investments (HI) Pte. Ltd. (“UVIHI”), entered into a sale and purchase agreement (“SPA”) with Holborn Management Limited and 120 Holborn Propco Limited to acquire all interest in and estate to the Property (the “Acquisition”) at a consideration of €263m (£229.6m), subject to usual post-completion adjustments (“Purchase Price”).
UVIHI is a 50:50 joint-venture company incorporated in Singapore by UOL Venture Investments Pte. Ltd., the Company’s wholly-owned subsidiary, and UIC Overseas Investments Pte. Ltd., a subsidiary of United Industrial Corporation Limited (“UIC”). UVIHI’s principal activity is that of investment holding.
The Purchase Price was arrived at on a willing-buyer and willing-seller basis taking into consideration various commercial factors, including the location and potential of the Property and prevailing market conditions.
A deposit of €26.3m (£22.96m) was paid on signing of the SPA. The balance of the Purchase Price is payable on completion, which is scheduled for 10 November 2016. The acquisition would be financed by internal resources and external borrowings and is not expected to have a material impact on the Group’s net tangible assets or earnings per share for the financial year ending 31 December 2016.
