HK Developer HPW to Privatize Company from HKEx

Hong Kong developer started privatization of the company from HKEx. Hong Kong developer Hopewell Holdings halted trading in its shares and revealed that its the proposal for the privatisation of the company "by way of a scheme of arrangement."

The group's chairman Gordon Wu Ying-sheung is expected to privatize the developer for HKD16 billion to buy back the shares.

The group's annual report pointed out that the implied value of the hotels business is HKD5.063 billion or HKD 66.4 per share. The share price of the company was HKD26.45 before share trading was halted and is 60% lower than the implied value.

As at September 30, the group's cash and available banking facilities are HKD9.68 billion and HKD3.34 billion respectively while the total debt and total asset are HKD1.4 billion and HKD55.9 billion respectively.

Gordon Wu and his wife hold a total of 28.12% of shares while Wu's son, Thomas Jefferson Wu, holds 3.33%.

The group said neither it nor any of its subsidiaries had purchased, sold or redeemed any of the company's listed securities during the three months ended September 30, 2018. Hopewell Holdings failed to spin off its Hong Kong assets to list on the market in 2013.