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The takeover offer by Perennial-Yanlord consortium for the ordinary shares of United Engineers (UE) lapsed on Tuesday as there were few takers.

The offer, which has already been extended twice, closed on September 19 with valid acceptances for ordinary shares amounted to a just 1.36 percent of the issued capital.

The resultant shareholding for the consortium inched up to 34.8 percent from the 33.43 percent held before the offer was made.

In July, a consortium led by Singapore-listed property developers Perennial Real Estate Holdings and Yanlord Land Group made a mandatory conditional cash offer for UE at S$2.60 per share.

The offer closing date was extended to September 12 from previous deadline of August 29.

The offer for United Engineers failed to cross 50 percent aggregate holding by the consortium to become conditional.

"As a result, the ordinary share offer has not become unconditional in all respects as at the ordinary share offer closing date and has therefore lapsed," the company said in a statement on Tuesday evening.

Shareholders who have accepted the offer will have their shares returned to them, the statement said.

Following the announcement, UE said that several of its independent and non-executive directors are stepping down.

Perennial also said that Lee Suan Hiang, an independent director on Perennial's board, has also been appointed as an independent non-executive director on the board of United Engineers.

Shares in UE lost 0.7 percent to S$2.7 on the Singapore Exchange. The stock has gained 8 percent so far this year.