Property magnate’s 26-year-old daughter buys Sing Tao, sends Hong Kong paper’s shares soaring by 54 per cent to five-month high
- 28 per cent stake acquired at premium of 65 per cent over stock’s last trading price
- Deal conducted in cash off the market while chairman Charles Ho will sell out all stakes after holding the newspaper company for 20 years
Kwok Hiu-ting, the 26-year-old daughter of Kaisa Groups founder, has bought control of the publisher of Hong Kong’s oldest Chinese-language newspaper, as the real estate developer makes its push into the city’s media business.
Kwok, who agreed to pay HK$369.8 million (US$47.7 million) last week to buy 28 per cent of Sing Tao News Corporation from the company’s chairman Charles Ho Tsu-kwok, said she wants the newspaper to invest more in mobile media, according to a statement.
“The acquisition of the stake in Sing Tao is my personal investment,” Kwok said. “I invest in the group mainly because of Sing Tao’s diversified media platform, strong brand, influence [in the community] and due to its high-quality news coverage.”
Sing Tao’s shares soared by as much as 54 per cent on the Hong Kong exchange when trading resumed after a three-day suspension for the acquisition announcement, in their biggest intraday percentage jump. Sing Tao shares rose to as much as HK$1.40, the highest intraday level since August 26, close to Kwok’s acquisition price for her stake.
Sing Tao would make better use of technology in future after being acquired by Kwok, invest more in mobile media to further diversify its business and keep the global Chinese-reading community promptly informed with the most comprehensive and in-depth news coverage, she said.