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Chinese Estates Shares Soar More Than 30% as it Proposes Privatization By Investing.com

by Mike Robinson

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© Reuters.

By Gina Lee

Investing.com – Chinese Estates Holdings Ltd . (HK:), shares Thursday, after China’s former major shareholder Evergrande Group (HK) proposes to privatize for HK$1.91billion ($245.30m)

China Estates Hong Kong shares soared to HK$3.79, up 30.69% by 12:37 ET (4:37 GMT)

Solar Bright Ltd. is backing the privatization proposal. Its largest shareholder, Joseph Lau of Chinese Estates, also backs it. Chinese Estates’ proposal will offer minority shareholders HK$4 apiece, a 38% premium to the developer’s last traded price.

Chinese Estates, which held a stake of 6.48% in China Evergrande, was second. It then sold it to 4.39% as it had at Thursday’s close. Lau, Chinese Estates’ former chairman, is a member of a ‘poker club’ of Hong Kong tycoons that included China Evergrande chairman Hui Ka Yan. China Evergrande is still struggling with its debt.

Chinese Estate shares were suspended from trading on Sep. 29, and fell 42% in 2021 prior to the suspension. Privatization could reduce listing costs, manageable resources and allow for more flexibility in implementing long-term business plans.

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