Hong Kong billionaire Li Ka-shing has announced plans to separate the real estate assets of his vast business empire into a separate company called CK Property.
The remaining assets, which include Hutchison Whampoa’s telecoms operations in 12…
Hong Kong billionaire Li Ka-shing has announced plans to separate the real estate assets of his vast business empire into a separate company called CK Property.
The remaining assets, which include Hutchison Whampoa’s telecoms operations in 12 countries across Europe and Asia, will be listed separately as CKH Holdings.
Li and his family trusts currently own nearly half of Cheung Kong, which controls Hutchison, and following the restructuring they will have combined stakes of around 30% in each of the new companies.
“This transaction is expected to create significant value for shareholders through the elimination of the holding company discount, which will be shared by Cheung Kong and Hutchison shareholders,” said Li, who is chairman of both companies.
“The distinct business profiles of CKH Holdings and CK Property will enable investors to better value the underlying businesses of the groups and may lead to further value enhancement in the future.”
Li will also be chairman of CK Property and CKH Holdings after the deal, which is expected to close in June subject to shareholder approvals.
HSBC, BofA Merrill Lynch and Anglo Chinese have been hired as financial advisers. Hutchison said it plans to appoint an independent financial adviser.
