Hsin Chong awaiting majority share offer
Hsin Chong Construction deputy chairman Yeh V-nee said he and his father - who hold a controlling stake in the company - are considering selling their entire holding if they receive an attractive offer.
He said no specific negotiations were underway at present despite market speculation a mainland party had broached the idea of a possible acquisition.
Hsin Chong shares were unchanged yesterday at $3.4 after hitting an intra-day high of $3.7.
Mr Yeh, his father Geoffery Yeh Meou-tsen and other members of the Yeh family together hold slightly more than 50 per cent of the company.
'We are one of the very few families willing to talk about selling controlling stakes in their companies openly,' he said.
'I am more interested in equity investment than the construction operation,' he said.
Mr Yeh co-founded privately-owned Value Partners - an investment adviser with more than US$220 million under management.
Asked whether his family would prefer to sell to mainland parties, Mr Yeh said an alliance with a mainland group would enhance its competitive advantage across the border. In the longer term, the company hopes to expand into the mainland construction market, he said.
He said Hong Kong's construction sector would remain robust in the next five years and as of June the company and its associates had construction orders on hand worth $11 billion.
He expected Tung Chee-hwa's promise to supply an annual 85,000 units in private and government subsidised housing sector for the next 10 years to boost the construction industry.
The supply of completed units, including both private and government subsidised flats, was 55,000 units last year, he said.
The company plans to sell its proposed 275-room hotel development in Hill Road, Western, if it receives a good offer, he said.
Hsin Chong purchased a 10-storey industrial building in Wai Yip Street, Kwun Tong, for $117.5 million in April. It is applying for lease modification to change the land use for industrial/office purposes.
He said the company planned to relocate all its operations into the Kwun Tong industrial building after a renovation due for completion by the end of next year.
