Hong Kong tycoons find easy way to unearth value
10/08/2017 04:02
(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
By Robyn Mak
HONG KONG, Aug 10 (Reuters Breakingviews) - Peter Woo's
Wharf plans to spin off $29 bln of local malls and skyscrapers.
Like Li Ka-shing's 2015 reshuffle, this is meant to ensure a
sprawling empire is fully valued by the market. This may inspire
other property barons to follow suit - but investors will need
to be patient.
Full view will be published shortly.
On Twitter https://twitter.com/mak_robyn
CONTEXT NEWS
- Hong Kong property group Wharf Holdings said on Aug. 9
that it planned to spin off property assets worth HK$230 billion
($29.4 billion) into a separately listed entity. The proposal
has been approved by the Hong Kong stock exchange, the company
added.
- The subsidiary, Wharf Real Estate Investment Company
(Wharf REIC), will own six properties in Hong Kong with an
annual turnover of more than HK$13 billion.
- After the spinoff, Wharf will be focused on properties in
Mainland China and Hong Kong, and logistics and hotel management
businesses.
- Shares of Wharf closed up 12.2 percent at HK$79.65 on Aug.
9. As of mid-morning Hong Kong time on Aug. 10, they were down
6.4 percent at HK$74.55.
- For previous columns by the author, Reuters customers can
click on MAK/
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Wharf Holdings announcement: http://www.hkexnews.hk/listedco/listconews/sehk/2017/0809/LTN20170809557.pdf
BREAKINGVIEWS - Li Ka-shing's successor faces big disruptions
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(Editing by Quentin Webb and Katrina Hamlin)
((robyn.mak@thomsonreuters.com;)(Reuters Messaging:
robyn.mak.thomsonreuters.com@reuters.net))
Keywords: WHARF HOLDINGS RESTRUCTURING/BREAKINGVIEWS