Hong Kong's Wheelock shares jump on $6.2 bln privatisation plan (updated)
27/02/2020 06:58
(Adds details)
HONG KONG, Feb 27 (Reuters) - Shares of Hong Kong property
group Wheelock and Co 0020.HK jumped 50% after it announced a
plan to take the company private in a HK$48 billion ($6.16
billion) deal.
Wheelock said in a statement on Thursday that former
chairman Peter Woo, who holds almost a 70% stake in the company,
had offered an aggregated amount of HK$71.90 per share to take
the group private. urn:newsml:reuters.com:*:nFWN2AQ1F3
The amount comprises of one share each of Wheelock's two
subsidiaries - Wharf Real Estate Investment Company 1997.HK
and Wharf Holdings 0004.HK - and a cash consideration of
HK$12.
Wheelock shares, which resumed trading in the afternoon
following the announcement, jumped as much as 50.3% to hit an
all-time high of HK$71. Shares had been suspended from trading
since Monday.
Wheelock said the privatisation would unlock shareholder
value through the elimination of the historical holding company
discount of the company's stake in Wharf REIC and Wharf
Holdings, and give shareholders higher dividend income from the
two subsidiaries.
The company also said the offerer does not intend to
increase the offer.
Wharf REIC 1997.HK fell as much as 6.2% to HK$37.70, an
all-time low, while shares of Wharf Holdings remained suspended.
($1 = 7.7917 Hong Kong dollars)
(Reporting by Clare Jim and Donny Kwok; Editing by Tom Hogue
and Amy Caren Daniel)
((clare.jim@thomsonreuters.com; +852 2912 6653; Reuters
Messaging: clare.jim.thomsonreuters.com@reuters.net))