A TORONTO-listed company is buying mainland property interests in a deal valued at about HK$1 billion from subsidiaries of Hongkong Macau International (Holdings).
The deal, agreed yesterday, will see HMH China Investments - of which Hongkong Macau indirectly owns 82 per cent - take the China properties for C$176.76 million (about HK$1.01 billion).
It will be settled through the issue of 535.65 million new shares of HMH at 33 Canadian cents a share, which will increase Hongkong Macau's shareholding in HMH to 96.8 per cent.
On completion of the deal, expected in the first quarter of next year, two share placings will be made at 33 Canadian cents that will reduce Hongkong Macau's stake to 64.8 per cent of the HMH enlarged issued share capital.
The issue price represents a premium of about 94 per cent over HMH's closing price of 17 cents on the Toronto Stock Exchange on November 21.
The property interests to be acquired represent about 31 per cent of the consolidated pro forma net asset value of Hongkong Macau.
HMH, a real estate investment holding company, has a 99 per cent interest in a four-star hotel in Guangzhou and a 23.4 per cent equity interest in SEZ Development Centre Co.