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FRIDAY, JANUARY 29

THE finance director of Dairy Farm has denied that the company will offer a full takeover of Kwik Save. There has also been speculation that the Jardines group plans to take over a Malaysian car dealership for $500 million. According to the Singaporean securities industry, Jardine Strategic last year bought 16 per cent of Singapore's CCL for $1 billion. CCL recently received an offer for 43.4 per cent of its Malaysian subsidiary. The offer was rejected. The market speculated that the anonymous potential buyer was a Jardines company. - SING TAO MR Yip Wai-lam, general manager of CDL Hotels International, says the company is in talks with its majority shareholder, the Malaysian Hong Leong group, over the purchase of the Holiday Inn Grand Plaza in Xiamen, China. The hotel will be injected into the company only when it is returning stable profit levels, but Mr Yip says such a development may take a while. The hotel's market value is US$38 million. - SING TAO INNOVATIVE International's share price has risen dramatically from $1.30 to $1.90 of late. It is speculated in the market that the company will set up shopping centres in Guangzhou and Shenzhen in co-operation with mainland groups. It is also said that Innovative intends to issue shares to partners of the shopping centre project. - TIN TIN DAILY NEWS CHUN Wo Construction chairman Pang Kam-chun says the company is looking to win projects at one or two of the designated underground railway stations in Guangzhou. He estimates the projects will be worth between $700 million and $1 billion. If everything goes smoothly, the company may make 25 per cent profit in the projects. - TIN TIN DAILY NEWS MR Lung Chi-kin, general manager of New World Development, says the company has written to the Kowloon-Canton Railway Corp to express its interest in taking part in a big commercial development in Hunghom's reclaimed area. He says no decision has been reached as the corporation has yet to express its firm intentions and with the Government not having ruled on the matter. He adds that the skytrain project from Hunghom to Tsim Sha Tsui, proposed by New World and Cheung Kong among others, has been modified andsubmitted to the Government for review. - ORIENTAL DAILY NEWS FIVE listed companies plan to sell properties in China. Hutchison Whampoa may put its multi-storey housing development in Tianhe, Guangzhou, on the market. Current prices in the area are about $700 to $800 a square foot. Lai Sun Development will release its property in northern Guangdong in March. Jardine Pacific may market its Wuhan development, Chia Tai its shopping arcade in Dongguan, and Shun Shing its Zhaoqing development. - HK ECONOMIC JOURNAL MR Lo Yuk-sui, chairman of Century City International, says the company will find it difficult to set a price for the privatisation of Paliburg International if it decides on such a move. Century City's directors have noticed that the company's shares are being traded at a large discount to net asset value. Apart from buying back shares on the market, the directors will also increase the group's dividends. - ORIENTAL DAILY NEWS MR Tommy Tam Hok-lam, chairman of National Electronics, predicts that the company's profits for the year to March should see a 40 per cent growth over the previous year. On the company's watch business, he says the Bao'an expansion plan is being drafted. He expects the expansion to be completed this year. - MING PAO A SOURCE in the banking industry says the raising of a loan for the Hopewell group to co-develop a fuel-generating plant in the Philippines has begun. It will be sponsored by the US Export-Import Bank and arranged through Citicorp. The loan of US$185 million will have a four-year tenure. Interest rates will be at 2.5 percentage points above LIBOR. It is thought that as this loan is guaranteed by the Exim Bank, many banks should be willing to participate. Hopewell's joint venture with the Philippine Government will still require operating capital, and the joint venture will seek to raise an additional US$200 million through the Bank of Tokyo. This loan will be for 14 years. - SING PAO A SPOKESMAN for Hongkong and Shanghai Bank has described as pure rumour news that the bank will reduce its stake in Hang Seng Bank. There has been speculation that Hongkong Bank will sell a 10 per cent stake in Hang Seng Bank. Hongkong Bank owns 61.5 per cent of Hang Seng. - TA KUNG PAO THE Lai Chi Kok amusement park will close its zoo facilities within six months as the Government has marked off the area next to the park as a multi-purpose development zone. A director of Far East Hotels, which is responsible for the park, says the company is discussing land-use rights with the Government. Far East Consortium earlier sought to redevelop the Sung Dynasty Village next to the park, but its application was rejected by the Government. - MING PAO Chinese Press Digest is produced by Corporate Information Services. For pre-publication and other services, telephone 865 5006 or fax 865 5835.

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