Midea Real Estate doubles on plan to separate property development business

Midea Real Estate Holding

24/06/2024 05:03

** Shares of Midea Real Estate Holding  3990.HK  soar as
much as 101.1% to HK$7.54, their highest since Sept. 11, on
course to snap two sessions of decline
    ** Stock last up 68.5%, top pct gainer in Hang Seng
Composite Index on properties and construction stocks  .HSCIPC  
    ** Co says to reorganise business with residential property
development and sales business to be held by controlling
shareholders' privately owned Midea Construction (BVI) Ltd,
which will be separated from the company to reduce shareholders'
exposure to the investment risks
    ** Says the reorganisation will enable the company to
streamline operations and focus on asset-light businesses on
property management services, commercial properties, industrial
parks and construction project management, among others
    ** As part of the plan, co proposes a distribution of one
Midea Construction share for ever share held, or a cash
alternative of HK$5.90 per share, which represents 57.33%
premium over Friday's close of HK$3.75 each
    ** Co says it will continue to be listed on the stock
exchange
    ** Stock up 17.9% YTD  

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))