Li Ka-shing has added eel roasting and farming to his long list of activities with his flagship, Cheung Kong (Holdings), buying a stake in the soon to be listed Chaozhou Industries (Holdings).
James Huang Xiaojiang, managing director of the eel company's parent, Guangnan (Holdings), yesterday confirmed that Mr Li, who is a Chaozhou native, had picked up 3 per cent of the company's existing capital as a strategic investment.
Mr Huang did not disclose the value of Cheung Kong's deal supporting Mr Li's hometown because the listing is still subject to the approval of the China Securities Regulatory Commission (CSRC).
The stake is expected to amount to only a few million Hong Kong dollars given that Chaozhou is to raise $125 million in its initial public offering.
It would be the latest in a string of such stakes taken by Hong Kong blue chips in recent share offerings by red chips.
Speaking after Guangnan's extraordinary meeting, Mr Huang said the plan to hive off the eel business on the Hong Kong exchange had been submitted to the CSRC by Guangnan's parent, Guangdong Enterprises, and it was awaiting official approval.
The spin-off was approved in principle by the stock exchange in March but was held up after Gitic Enterprises' listing raised questions about whether red-chip listings and spin-offs needed to be first approved by the CSRC. Chaozhou indirectly holds 51 per cent of three joint ventures in China with combined production capacity of 5,000 tonnes of eels last year.