Harbour Ring shares jump on news of stake disposal
Hutchison Harbour Ring shares jumped as much as 20 per cent to HK$0.78 when they resumed trading on Tuesday morning after the firm’s controlling shareholders said they might sell their stake to a unit of Shenzhen-based developer Oceanwide for as much as HK$3.83 billion.
The shares of Harbour Ring, listed on the Hong Kong stock exchange since 1991, were the best-performing in early trading on the bourse. The company, a unit of billionaire Li Ka-shing’s Hutchison Whampoa, invests in commercial property in Shanghai.
Hutchison units Promising Land International and Uptalent Investments are in discussions to sell their combined 71.4 per cent stake in Harbour Ring to the Shenzhen-listed developer, according to a Hong Kong stock exchange filing on Monday.
Market observers expect Oceanwide to seek a back-door listing after the deal.
The deal will give the mainland developer access to the international capital markets and “facilitate sustainable development”, the Beijing-based purchaser said in a separate, emailed statement on Monday.
The proposed disposal would be at a discount, given Harbour Ring’s market capitalisation of HK$5.83 billion at HK$0.65, the last price on Friday before trading in the stock was suspended, according to data compiled by Bloomberg; at that price the 71.4 per cent stake would be worth HK$4.16 billion.
The firm reported a halving of consolidated profit attributable to shareholders for this year’s first half to HK$57 million from HK$112.8 million in the same period last year.
Revenue for its two office and commercial premises in Shanghai increased 8 per cent to HK$46.5 million this year’s first half.