Jakarta –
Hong Kong billionaire Henry Cheng’s investment firm, Chow Tai Fook Enterprises (CTFE), has announced it will buy NWS Holding. For this acquisition, the company offered HK$ 35.5 billion, equivalent to US$ 4.5 billion or IDR 67.5 trillion (exchange rate IDR 15,000/US$).
As reported by Forbes, Saturday (1/7/2023), NWS Holding itself is part of the property giant New World Development. New World Development alone is said to receive around HK$21.8 billion from the disposal of the shares.
“The offer will strengthen New World Development’s financial position and enhance New World Development’s strategic focus on property development, property investment and property-related businesses,” CTFE said in a statement to the Hong Kong stock exchange.
Currently, CTFE directly owns around 2.5% of NWS Holding shares. CTFE is offering HK$9.15 each to acquire the shares it does not already own in NWS. This includes a 60.9% stake owned by New World Development, which will lighten the property developer’s debt burden.
CTFE said the offering represented a premium of 14.5% from its last trading price of HK$7.99 on Friday before its shares were suspended.
This offer also translates into a 30.9% premium over the average closing price of HK$6.99 over the 30 trading days, prior to the halt of trading. NWS saw its shares jump 10.3% in Tuesday morning’s session after they resumed trading.
CTFE said the purchase was made as New World Development continues to increase its disposal of non-core assets to reduce debt amid soaring interest rates and falling property prices. Earlier, the real estate giant said it would offload HK$10 billion worth of non-core assets during the financial year ending in June 2023.
The CFTE also added that, if a number of conditions were met, the company could exercise its rights to take NWS private, including acquiring more than 90% of NWS shares it does not yet own for HK$35.5 billion.
As additional information, NWS is one of New World Development’s leading companies. The company’s businesses include highways, construction and insurance. CFTE owns 45.2% of the company’s shares.
The company recorded a revenue increase of 7.8% year-on-year (yoy) to HK$ 17.6 billion in the second half of 2022. At the same time, the company recorded a 26.6% decrease in net profit to HK$ 1.2 billion.
(fdl/fdl)
2023-07-01 14:00:49
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