HK Ferry dismisses rumours

PUBLISHED : Friday, 20 November, 1998, 12:00am
UPDATED : Friday, 20 November, 1998, 12:00am

Hong Kong Ferry (Holdings) has denied its leading shareholder Henderson Investment has plans to privatise the company.

A Hong Kong Ferry spokesman said there had been no significant change in the stake held by Henderson.

The announcement came after Hong Kong Ferry's share price jumped 17.78 per cent amid heavy trading on Wednesday on speculation that Henderson had increased its stake to pave the way for privatisation.

Hong Kong Ferry described the speculation as inaccurate. Henderson Investment, which holds 30.48 per cent of Hong Kong Ferry, was unavailable for comment.

Yesterday the ferry company's shares eased five cents to close at $10.55 after trading between $10.5 and $11.1. Volume dropped to 936,500 shares from 3.34 million the previous day.

The spokesman said the rumours might have arisen due to the collapse of land-premium negotiations with the Government over a massive property development at Central ferry piers. This led to the company's ferry operating unit, Hongkong and Yaumatei Ferry, losing its 75-year franchise.