Takeover Fight Brews in Singapore for WBL

By BY P.R. VENKAT

SINGAPORE—Another fight is brewing in Singapore, this time over conglomerate WBL Corp.,

right on the heels of Southeast Asia’s biggest takeover battle, reflecting the city-state’s new position as the region’s deal capital.

Singapore-based property and engineering company United Engineers Ltd.

said Wednesday that it planned to bid US$545 million for the shares in WBL that it and its partners don’t already own, topping a US$445 million offer made this month by Straits Trading Co.

United Engineers said its bid is supported by some other WBL shareholders, including Oversea Chinese Banking Corp.

Group and Great Eastern Group, who together with United Engineering own 38.3% of WBL.

WBL’s business interests include property, technology and engineering. It also distributes such high-end automotive brands as Bentley, Bugatti and McLaren in a number of East Asian markets, including Singapore, China and Thailand. The company owns a 57% stake in Nasdaq-listed Multi-Fineline Electronix Inc. and a 77% stake in Singapore-listed MFS Technology Ltd.

Singapore became a hot destination for deals last year as local and foreign companies, seeking exposure to fast-growing Southeast Asia, vied for control of some of the city-state’s most storied names.

One of its oldest companies, Fraser Neave Ltd.,

was the subject of a months-long takeover battle between Thai billionaire Charoen Sirivadhanabhakdi and Indonesia’s Riady family. Mr. Charoen is poised to take control of Fraser Neave, a property and soft drinks conglomerate, after submitting the winning bid on Jan. 18, one that valued the company at US$11.2 billion.

Prior to that battle, Fraser Neave sold its stake in the company that brews Tiger beer to its joint-venture partner, Heineken NV,

for US$4.6 billion in September.

Swiss chocolate maker Barry Callebaut AG

capped off Singapore’s big year in December, when it bought Petra Foods Ltd.’s

cocoa-ingredients business for US$950 million.

By the time 2012 had ended, Singapore ranked No. 1 in Southeast Asia for targeted mergers and acquisitions, with deal value for the year totaling US$38.34 billion, more than double the previous year’s amount, according to data provider Dealogic. Singapore’s share of such deals regionwide rose to nearly 40% last year.

The latest battle took shape on Wednesday, when United Engineers said in a filing to Singapore Exchange

that it will offer 4 Singapore dollars (US$3.25) a share to buy 61.7% of WBL, topping Straits Trading’s offer of S$3.41 a share or 1.07 shares of Straits Trading.

United Engineers, whose offer values WBL at S$1.1 billion, said it plans to finance the acquisition with internal funds, bank loans and debt to be raised under its S$500 million note program.

“For WBL shareholders, our offer provides a better alternative at a 19% premium to a competing cash bid,” United Engineers CEO Jackson Yap said in a statement.

Straits Trading and WBL declined to comment on United Engineers’ offer.

Straits Trading, which has interests in property, resources and hotels, said it and its partners have a combined 44.6% stake in WBL.

WBL’s shares have gained 5.3% this year, compared with a 3.6% gain for the benchmark Straits Times Index.

Write to P.R. Venkat at venkat.pr@wsj.com

Takeover Fight Brews in Singapore for WBL