SINGAPORE (Feb 5): United Engineers is seeking to dispose indirectly-owned subsidiary MultiFineline Electronix (MFlex).

This will be accomplished by merging a unit of Suzhou Dongshan Precision Manufacturing, a Shenzhen-listed stamping and sheet metal manufacturer with MFlex.

Once the deal is completed, MFlex will be the only surviving corporation, wholly owned by Suzhou Dongshan.

For the disposal, each stockholder of Nasdaq-listed MFlex will receive US$23.95 ($33.50) for each share.

UE ownership structure of MFlex is complicated and held through several of its subsidiaries.

An agreement and plan of merger has been signed between UE, Suzhou Dongshan, and its subsidiary. The merger is subject to the approval of the shareholders of UE and MFlex.

At present, Great Eastern Holdings owns a 17% stake in UE through ordinary and preference shares while Oversea-Chinese Banking Corporation owns another 4.3% stake.

Both parties have provided undertakings to vote all of their shares in favour of the merger.

Shares of MFlex closed 0.16% higher at US$12.38 on Thursday.