Shun Tak Holdings is promising shareholders a special share offering in little-traded subsidiary Melco International Investment in a move to improve its liquidity, officials say. The special share offer was included in Shun Tak's Holding's year-end results for 1995 when the company registered a net profit of $718.5 million, down fractionally from the previous year's $721.4 million. 'We are not going to restrict Melco to simply being involved in food and beverage,' Andrew Tse, Shun Tak's Holding's chief financial officer, said. Melco, the holding company which controls the highly profitable Aberdeen Floating Restaurant, is 59 per cent owned by Casino operator Stanley Ho's Shun Tak Holdings. Mr Tse said the offer of one Melco share for every 20 Shun Tak shares was an attempt to improve the attractiveness of the thinly traded stock. Yesterday, Melco was trading about $3 per share, a substantial discount to its net asset value (NAV), according to Mr Tse. If the share distribution goes ahead, public stock holders will increase their ownership in Melco to 57.7 per cent, from 29.3 per cent. Shun Tak Holding's control of the subsidiary would fall to 22.3 per cent and Mr Ho's ownership in Melco would increase to 20 per cent, from 11.7 per cent. Mr Tse hinted that Shun Tak had big plans for the subsidiary. 'We are keeping our eyes open in the property sector,' he said. 'Bearing in mind this is a small company, we have to broaden our investments.' Analysts said they were not surprised by the Melco arrangement or by Shun Tak's results. 'It was exactly what we had been expecting,' said one who seemed to sum up the general feeling among analysts. Shun Tak reported a $172 million profit from the sale of property in Robinson Road in Mid-Levels. While Shun Tak's jet-foil traffic increased, operating profit was down about 10 per cent, analysts said. The company booked an exceptional loss of $16 million which it said was for a final settlement of indemnity and warranty claims related to the disposal of a subsidiary in 1994. It also reported a small drop in total turnover to $1.76 billion, down from last year's $1.87 billion in 1994. Operating profit was up slightly to $696.2 million from $681.2 million the previous year, the company said. A final dividend of 32.5 cents per share for the year was proposed, the same as paid in 1994.