Hong Kong conglomerate Goldin Financial’s stock soars on plan to sell property worth US$1.6 billion to chairman
Company also plans to buy remaining ownership of grade A office in Kowloon East for HK$5.6 billion from Pan Sutong
Hong Kong conglomerate Goldin Financial Holdings plans to sell two pieces of land in the city’s Ho Man Tin area worth HK$12.4 billion (US$1.6 billion) to mainland billionaire Pan Sutong, who is also the company’s chairman.
The company’s share price jumped as much as 18 per cent on Wednesday when it resumed trading after an 11-day suspension. By the close, it was up 8.9 per cent to HK$3.81, the biggest daily jump since February last year.
Daily turnover reached HK$41.3 million, with 10.5 million shares changing hands. Hong Kong’s benchmark Hang Seng Index declined 1 per cent to end at 30,328.15 on Wednesday.
Goldin Financial will sell a 60 per cent stake in a residential project on Sheung Shing Street for HK$6.4 billion, and a 50.1 per cent stake in a residential project at Ho Man Tin MTR station for HK$6 billion, according to a filing to the Hong Kong stock exchange.
The total gain from the sale before tax will be about HK$6.43 billion. Meanwhile, the company plans to buy the remaining 40 per cent ownership of Goldin Financial Global Centre, a grade A office in Kowloon East, for HK$5.6 billion from Pan.
“The transaction will help to enhance the cash position as well as gearing position of the company. The 100 per cent ownership of the grade A office building in Kowloon Bay will provide stable rental revenue,” Goldin Financial said in the filing.
