Guoco in talks for Lap Heng

Banking and financial conglomerate Guoco Group has confirmed it is considering a takeover bid for watch maker Lap Heng Co.

The group president, Kwek Leng Hai, said in a statement to the Hong Kong stock exchange that Guoco was negotiating with the major shareholders of Lap Heng, with a view to acquiring their controlling interest in the company.

Lap Heng directors said they knew the company's major shareholders had been approached by 'a number of parties' - including Guoco Group - to sell their controlling interest in the watch-making company.

Both Lap Heng and Guoco said discussions were at a preliminary stage.

Lap Heng directors said negotiation of contractual documentation had 'only recently commenced'.