Walter Kwok surprises market in taking temporary leave of absence
Sun Hung Kai Properties, Hong Kong's largest developer by market value, made a sudden announcement late last night that chairman Walter Kwok Ping-sheung would take a 'temporary' leave of absence for personal reasons.
In what is seen as an unprecedented move by a major listed firm, SHKP said that Mr Kwok would relinquish all duties and responsibilities with immediate effect.
An hour-and-a-half after the announcement, Mr Kwok said in a personal statement through a company spokesperson that his temporary absence was due to an ongoing personal and business trip overseas that would last two to three months. His destinations include Beijing and the United States, among other places, according to the statement.
SHKP said his duties would be assumed by his two younger brothers, Thomas Kwok Ping-kwong and Raymond Kwok Ping-luen, who are both the company's vice-chairmen and managing directors.
'Mr Kwok wants to take a long leave. To maintain good corporate governance, he has relinquished all his duties,' a SHKP spokesperson said, adding that his decision was not related to health issues.
Mr Walter Kwok was last seen in public on Friday at the Chief Executive's spring reception at Government House, where he appeared to be in good spirits.
The announcement also caught the company's management by surprise.
'I have not heard any news of it. It is not a sign that there will be a big change in top management,' an executive of the company said last night.
The Kwok brothers were ranked at No3 on Forbes' list of the richest people in Greater China last year with an estimated net worth of US$14 billion.
Mr Walter Kwok is an executive director of a number of listed companies including Sunevision and Kowloon Motor Bus. His public duties include being a standing committee member of the National Committee of the Chinese People's Political Consultative Conference.
'The move is strange. It would be good if the company could tell us why the chairman has taken leave. That will clear up the uncertainties,' said an analyst who requested anonymity.
He said SHKP's share price would come under pressure in the short term. The stock fell 1.69 per cent yesterday to HK$139.40 before the announcement.
In 1997, Mr Walter Kwok was reportedly kidnapped by Cheung Tze-keung, a notorious gangster known as 'Big Spender'. Neither the company nor Mr Kwok has ever confirmed whether the incident took place.
Bear Stearns property analyst Adrian Ngan Wai-hung said the company's business over the medium term would not be affected as its corporate structure was well established and would not be seriously affected by the change.
