CEO Wee of UOB and chairman Tan of Kim Heng raise stakes in respective companies
Wee Ee Cheong, CEO of United Overseas Bank (UOB), has raised his stake in the bank his family controls. On Feb 23, he acquired 100,000 shares on the open market at about $29.58 each, bringing his direct stake to 3.28 million shares, equivalent to 0.2%.
In addition, Wee has a deemed stake in another 173.7 million shares.
The two stakes give him a total deemed interest of nearly 177 million shares, equivalent to 10.57%.
The last time Wee bought from the market was on Aug 19 when he acquired 25,000 shares at $26.80 each. Wee aside, the most recent acquisition by a UOB director was on Nov 11, 2022, when chairman Wong Kan Seng acquired 10,000 shares at about $29.39 each, bringing his holdings to 32,470 shares.
UOB reported its FY2022 ended December 2022 earnings before the market opened on Feb 23, the same day Wee bought the shares. In FY2022, the bank reported earnings of $4.8 billion, up 18% from $4.08 billion in FY2021, thanks to better margins from higher interest rates. The bank plans to pay a final dividend of 75 cents. This brings the payout for FY2022 to $1.35, representing a payout ratio of around 49%.
Besides enjoying the gains from higher interest rates, the bank has charted new growth ahead with the recent acquisition of Citigroup’s consumer banking business in four markets: Malaysia, Thailand, Indonesia and Vietnam.
“This transformational deal, sealed during the pandemic, positions us well in our strategic ambitions in the regional consumer banking space. We are excited to serve our enlarged customer base of 7 million with our expanded network and strengthened capabilities,” says Wee.
“The Asean region is vibrant with immense long-term potential. We remain positive about the region despite the global economic gloom in the near term. Looking ahead, we are confident that our strategy of seeking growth while ensuring stability will continue to create value for our customers and other stakeholders,” he adds.
Chairman raises stake
Thomas Tan, executive chairman of Kim Heng, has raised his stake in the company. On Feb 28, he acquired 200,000 shares at $18,000 or 9 cents each on the open market. Just a day earlier, he had acquired the same number of shares at the same price. The latest transaction brings his direct stake to 500,000 shares or 0.07%. In addition, he has a deemed interest in another 283.4 million shares or 40.17%. This gives him a total interest of 283.8 million shares or 40.24%.
On Feb 24, Kim Heng reported earnings of $7.4 million for FY2022 ended December 2022, reversing from a loss of $5.9 million from the year earlier. Revenue in the same period was up by 26% to $79.8 million.
The various business segments contributed to Kim Heng’s higher revenue, ranging from material sales, equipment rental, marine offshore support services, and from the trading and chartering of vessels.
Kim Heng says it is optimistic about its business, as the supply of available vessels and rigs is limited and demand has significantly improved and is expected to be “robust” due to a lack of investment in the past several years. In addition, with high oil prices and tight global supply, the move towards renewables continues unabated, which is positive for the company’s business.
There was a major change in Kim Heng’s shareholding last June. Credence Capital sold its entire stake of 17.71% in the company to Hildrics Capital at 10.5 cents each. There are notable names on both sides of the deal. Individuals owning and managing Credence Partners include Koh Boon Hwee, former chairman of leading Singapore Inc names such as Singapore Airlines, DBS Group Holdings and Singapore Telecommunications.
Hildrics Capital is jointly owned by Choo Kee Siong, a former UOB banker, and Wee Teng Chuen, whose father is UOB CEO Wee Ee Cheong. On May 11, Hildrics announced it had raised some $120 million for its first fund.