THE financial disclosure issue is just not going to go away.
As fast as stock exchange regulators try to put out one fire, by demanding full and comprehensive disclosure of a transaction at Hopewell, another vague announcement from Hutchison Whampoa threatens to spark a new controversy.
Last week Hopewell Holdings announced the sale of a 2.5 per cent group stake in the Guangzhou Superhighway project Phase I.
We were told the price was $964 million, and this was included in the interim profit and loss account for the six months to December 31, as an exceptional item.
Many analysts and investors were unhappy about the apparently shoddy way this thing emerged and wanted answers to basic questions such as: Who was the buyer? Was the deal in cash? Was there a put option exercisable by the buyer? When was the deal done? After a few firm letters from the exchange asking for clarification, Hopewell apparently agreed to cough up this information.
Then yesterday Hutchison confirmed it was taking a controlling stake in the 1,000-room, five-star Great Wall Sheraton Hotel in Beijing. Presumably a deal such as this sets the buyer back a few dollars.
