Hong Kong's CTF Services in talks to sell China toll roads for $2 bln, Bloomberg News reports

CTF Services

31/12/2024 06:46

Dec 31 (Reuters) - Hong Kong's CTF Services  0659.HK ,
part of the conglomerate owned by billionaire tycoon Henry Cheng
and family, is in early talks with China's state-owned Yuexiu
Group to sell a bundle of toll roads worth $2 billion, Bloomberg
News reported on Tuesday.
    The construction firm, formerly known as NWS Holdings, has
also held talks with other buyers and could sell the package of
roads in smaller chunks, the report said, citing unnamed
sources.
    CTF Services and Yuexiu did not immediately respond to
Reuters requests for comment.
    The potential sale is part of a strategic review of assets
to raise cash and boost investor value, the Bloomberg report
stated, and comes during an unfolding succession saga and
mounting challenges for the Cheng family's businesses.
    CTF's sister company, New World Development  0017.HK ,
clocked its first annual loss this year in two decades and has
amassed more debt than its Hong Kong peers. Heir Adrian Cheng
stepped down as the firm's CEO in late September, while his
replacement exited the company in just two months.
    Shares of New World ended this year more than 57% in the
red, while the family empire's third listed entity, Chow Tai
Fook Jewellery  1929.HK , has lost 42% in value. In contrast,
CTF Services's stock has risen 31.7%.

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Janane
Venkatraman)
 ((Nikita.Jino@thomsonreuters.com;))