Chevalier to spin off building unit
CHEVALIER Development International (CDIL) will spin-off its construction, civil engineering and building maintenance arm, which is to list on the Hong Kong Stock Exchange next month.
Details were released yesterday with the interim results of Chevalier Development and associate companies - Chevalier (OA) International and Chevalier International Holdings.
Under the demerger, Chevalier Construction Holdings (CCHL) will be listed from January 25. Chevalier Development owns CCHL's assets but following the demerger its stake will be 56.3 per cent of the enlarged capital.
CDIL plans to distribute one CCHL share to its shareholders for every five CDIL shares held by way of a special interim dividend.
Chevalier International Holdings, which has 52.5 per cent interest in Chevalier Development, will distribute one CCHL share for every 14 CIHL shares held.
Chevalier group chairman Chow Yei-ching said the listing would provide the company with better access to financing options. Chevalier Construction works for the private and public sectors including the Private Sector Participation Scheme, as well as doing building maintenance for the Housing Authority.
Chevalier Development has reported an 87.5 per cent drop in interim profit to $12.62 million despite a 263 per cent increase in turnover to $1.76 billion.
Earnings per share slid from 21.8 cents to 2.6 cents and an interim dividend of 3.5 cents was recommended.
Chevalier International Holdings reported a 42.29 per cent drop in interim profit to $62.2 million although turnover more than doubled to $2.8 billion.
Earnings per share on a fully diluted basis dipped from 14.8 cents to 8.45 cents and an interim dividend of four cents was declared.
In contrast, Chevalier (OA) International reported a 6.5 per cent increase in profit to $26.81 million for the six months, despite an 8.39 per cent decrease in turnover to $544.70 million.
Earnings per share rose from 3.94 cents to 4.14 cents.
An interim dividend of two cents will be paid on January 24.
