Hong Kong-based property developer and retail conglomerate New World Development Ltd. said Wednesday it is launching an offer to buy the outstanding shares of its China subsidiary and take the unit private.

New World Development Co. Ltd. is offering 7.80 Hong Kong dollars, or $1.01 at current exchange, in cash for each share of New World China Land Ltd., a premium of approximately 25.6 percent over the China unit’s last closing price of 6.21 Hong Kong dollars, or $0.80. New World already owns 69 percent of the Chinese subsidiary. If all shareholders tender their shares, the operation will cost New World Development approximately 21.45 billion Hong Kong dollars, or $2.77 billion.

New World Group’s core business areas include property development, infrastructure and services, retail, and hotels, and serviced apartments. The company has a total asset value of over 300 billion Hong Kong dollars, or $38.70 billion. The family of Hong Kong billionaire Cheng Yu-tung, who initially made his fortune from jewelry business Chow Tai Fook, controls New World.

New World China Land Ltd. is the flagship mainland China property arm of the Hong Kong-listed New World Development Company Ltd., and is one of the leading large-scale national developers in mainland China with total assets of 134.4 billion Hong Kong dollars, according to the company’s Web site.

This is New World Development Company’s second attempt to take its China unit private after its previous attempt lapsed in June 2014. This time, the company hopes to be successful as it is proposing to make the share offer by way of a general offer, rather than a scheme of arrangement involving a shareholders meeting vote.

New World Development Co. said it will finance the cash required for the offers from its own cash reserves. In addition, HSBC has granted a credit facility of 21.47 billion Hong Kong dollars, or $2.77 billion.

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