Li Ka-shing business empire shifts base from Hong Kong to Cayman Islands
Sweeping restructure by city's richest man sees all non-property assets of Cheung Kong group injected into newly formed company
Li Ka-shing yesterday added fresh grist to rumours about his waning interest in Hong Kong as he unveiled a sweeping restructuring of his business empire, switching its base of incorporation to the Cayman Islands from Hong Kong.
Li - the chairman of Cheung Kong (Holdings) and its subsidiary Hutchison Whampoa, which together have a total market capitalisation of HK$661.68 billion - said all of his two flagship companies' non-property assets, including ports, telecommunications, retail, infrastructure and energy, would be injected into a newly formed company, CK Hutchison Holdings (CKH Holdings), incorporated in the Cayman Islands.
As part of the reorganisation, all property businesses including those overseas in the two companies will be injected into another new entity, Cheung Kong Property Holdings, which will seek a separate listing on the Hong Kong stock exchange by introduction.
CK Property will be one of the largest property companies listed in Hong Kong.
Speaking at a press conference yesterday, Li, the richest man in Hong Kong, said the restructuring would be good for all shareholders.
According to a 70-page announcement filed with the Hong Kong stock exchange, the move is aimed at creating shareholder value as it will enable all the group's assets to be fully reflected and remove the "layered holding structure" between Cheung Kong and Hutchison.
That would allow shareholders to directly invest in the two separate listed vehicles.