JG Summit Group of the Philippines has signed an unconditional agreement to buy Salim Group's 23 per cent stake in Singapore conglomerate United Industrial Corp (UIC), following HKR International's last-minute decision to abort buying the stake.
Telegraph Developments, an overseas arm of John Gokongwei's JG Summit business empire, would pay S$310.87 million (about HK$1.41 billion) or $1 a share - the same price offered by Hong Kong's HKR.
HKR and its affiliate Mingly Corp, both controlled by the Cha family, came close to buying Salim's stake earlier this month, but decided to pull out after UIC posted a plunge in last year's profits which was larger than was expected.
The Hong Kong firms exercised an escape clause in their agreement with Salim, which had guaranteed UIC's earnings would not fall more than 35 per cent.
It was understood that JG Summit's agreement came without warranties, but would remain subject to due diligence.
On completion of the deal, scheduled for May 28, JG Summit would gain four seats on UIC's board. UIC's chairman Wee Cho Yaw, who also had a 23 per cent stake, had only offered HKR three.