Sun Hung Kai Properties
Sun Hung Kai Properties is one of Hong Kong’s largest property groups, with revenue of HK$68.4 billion in the 2011-2012 financial year, and profit attributable to shareholders of HK$43.08 billion. The company has been shaken in recent years by disputes between family members, with chairman and chief executive Walter Kwok being forced to step down in a dispute with his brothers Thomas and Raymond. In March, the Independent Commission Against Corruption (ICAC) arrested senior officials as part of a corruption probe that also included former chief secretary Rafael Hui.
Kwong confirms SHKP shares went to younger sons, Thomas and Raymond
Kwong Siu-hing confirms brothers who head developers given HK$33 billion stake
Kwong Siu-hing, the 84-year-old matriarch who controls Sun Hung Kai Properties (SHKP), has confirmed that she has transferred shares worth an estimated HK$33 billion to the families of two sons, who are co-chairmen of the HK$260 billion business empire.
She added that she had not given any shares to eldest son Walter Kwok Ping-sheung, who was ousted as chairman of the company in 2008 after a boardroom fight with his two younger brothers, who subsequently took over as co-chairmen of the city's second largest developer.
A statement issued yesterday by a trust controlled by Kwong said that on Friday she transferred 6.36 per cent of SHKP shares to a separate trust owned by Thomas Kwok Ping-kwong and his family and an equivalent amount of shares to another trust owned by Raymond Kwok Ping-luen and his family.
The combined 12.72 per cent stake, or 337.76 million shares, offloaded by Kwong is worth HK$33.1 billion at yesterday's closing price of HK$98.
The company had reported the share transfer from Kwong's trust in a filing to the stock exchange on Tuesday but had not specified the beneficiaries.
The statement on behalf of Kwong issued by the trust - which owns about 43 per cent of SHKP - said the latest transfer was on the lines of the terms of reorganisation of the trust in October 2010.
Under that reorganisation, a third of the trust is owned by "Walter Kwok's family", not "Walter Kwok and his family", as was the case before, meaning that Walter Kwok ceased to be a beneficiary. Thomas and Raymond Kwok each own a third of the trust along with their families.
Kwong reiterated the shareholding under "Walter Kwok's family" still remained unchanged, at one-third of the trust. But people familiar with the Kwok family said the families of Thomas and Raymond Kwok each now owns 6.36 per cent of the company shares, worth HK$16.55 billion. They had previously co-owned the stake with Kwong.
Kwong, who has reduced her stake in SHKP from 43 per cent to 30.79 per cent, remains the largest shareholder in the empire founded by her late husband, Kwok Tak-seng. Walter Kwok was unavailable for comment.