Back 10 Jul 2025

Union Steel Sells 40 Million Shares in Eneco Energy, Monetises Stake for S$460,000

Link: https://links.sgx.com/1.0.0/corporate-announcements/IB8BO2GMPTYNXV5I/f4d8886ea974f3a3cd47542adccbdd6e3ab182b16f892597f69f0352bef90bfc

Summary:

  • The board of Union Steel Holdings announced the sale of 40 million shares in Eneco Energy (about 1.60% of Eneco’s total shares) to Madam Yam Voon Chin, an independent investor in Singapore.

  • After the sale, Union Steel retains 481 million shares (19.3% stake) and 500 million warrants in Eneco Energy, each warrant convertible at S$0.009 per share before expiry on 31 August 2025.

  • Eneco Energy is a logistics group listed on the SGX Mainboard, operating RichLand Logistics, and remains on the SGX Watch-List until 1 December 2025.

  • The shares were sold via a married deal at S$0.0115 each, totalling around S$460,000, slightly below the book value of S$471,000. This results in an accounting loss of S$11,000.

  • Union Steel’s rationale is to monetise its investment for cash redeployment and new opportunities. Net proceeds after costs are about S$458,000.

  • The impact on Union Steel’s net tangible assets and earnings per share is minimal: NTA per share changes from 67.95 to 67.94 cents, with EPS unchanged at 10.78 cents.

  • The transaction does not involve any directors or controlling shareholders beyond their existing shareholdings, and no service contracts are tied to this sale.