Yu Ming Investments Co, formerly Sun Hung Kai Industries, is to boost cash on hand to $1 billion after reshuffling associate SHK Convertibles. Shareholders of SHK Convertibles yesterday approved the motion to distribute a $1.50 a share dividend, marking the first step of the reshuffle. SHK Convertibles will then proceed to a general offer by Sino Path Consultants, a third party which acquired 34.99 per cent of SHK Convertibles from Yu Ming earlier this month. Sino Path is about 30 per cent owned by SHK Convertibles executive director Augustine Chow Pok-yu. Yu Ming managing director Peter Fung Yiu-fai said the offer price of 55 cents per share was attractive given it represented a 10 per cent premium to the net asset value. SHK Convertibles will maintain its listing and Mr Fung will remain an executive director after the general offer. Mr Fung said Yu Ming intended to invest the cash in securities, convertible bonds, convertible notes and time deposits.
