Hong Kong's Wharf approves property unit spin-off
14/11/2017 06:56
HONG KONG, Nov 14 (Reuters) - Hong Kong property-to-media
conglomerate Wharf 0004.HK said on Tuesday its board had
approved a spin-off proposal for its property investment unit.
The plan would increase the operational and financial
transparency of each listed entity, and would enable the new
entity to have independent access to equity and debt capital
markets, the company said in a filing.
The board also approved a special interim dividend, of which
one new Wharf Real Estate Investment Company Limited (Wharf
REIC) share would be distributed for every Wharf share held.
Wharf first announced the spin-off proposal in August.
Shares of Wharf hit a new high after that announcement. On
Tuesday they had eased 0.9 percent, versus a flat broader market
.HSI .
The proposed spin-off, pending approval from the stock
exchange, will be implemented by way of introduction, without
raising any capital. Wharf REIC shares are expected to start
trading on Nov. 23.
Wharf REIC will focus on Hong Kong investment properties,
holding a portfolio of six premium quality investment properties
worth a total of over HK$230 billion ($29 billion) and an annual
turnover of over HK$13 billion.
After the demerger, Wharf will be focused on investment
properties and development properties in mainland China, other
Hong Kong properties, as well as logistics and hotel management.
(Reporting by Clare Jim; Editing by Stephen Coates)
((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))
Keywords: WHARF HOLDINGS DIVESTITURE/