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OVERSEAS Union Enterprise (OUE), now controlled by a Lippo-Ananda Krishnan consortium, has divested its entire 18.3 per cent stake in listed Hotel Negara by accepting UOL Group's mandatory cash offer for the company.

The offer closes at 3.30 pm on Friday.

Last month, ING Bank, the independent financial adviser to Hotel Negara's independent directors, recommended that shareholders accept UOL's offer as the cash offer at $6.45 per share 'is fair from a financial point of view'.

UOL entered into agreements in late June to buy a 54.5 per cent stake in Hotel Negara from United Overseas Bank, Overseas Union Holdings, Overseas Union Insurance and Overseas Union Facilities at $6.45 per share or $73.3 million in total. This triggered a mandatory conditional offer for the remaining shares.

At 5 pm yesterday, UOL had received acceptances amounting to 9.3 million shares, or about 44.5 per cent of the issued shares, which brings the amount of shares controlled and the valid acceptances to nearly 99 per cent.

UOL has said it will exercise any rights of compulsory acquisition.

Hotel Negara's main asset is the 200-room Meritus Negara Hotel in Claymore Road, which UOL is expected to redevelop.