Tung Fong Hung aims to cut debt with asset sales
Chinese pharmaceuticals-maker and retailer Tung Fong Hung (Holdings) may sell some assets to reduce a gearing level that it yesterday admitted was too high.
Speaking after the company's annual meeting, vice-chairman and managing director Ken Cheung Kwok-wah said the company hoped to cut debts by selling property.
He refused to say whether the firm would consider selling subsidiary Tung Fong Hung Properties.
Neither would he speculate on whether the group would complete the $206 million acquisition of the company, which owns In's Square shopping arcade in Mongkok, from Burwill Holdings, as agreed in September.
'For all the property deals, I'll undertake revaluations and decide how to respond given the present market situation,' Mr Cheung said.
A spokesman for Burwill said the company had not heard from Tung Fong Hung of any changes to the shopping arcade deal, which is due to be settled by the end of February.
Mr Cheung said Tong Fong Hung's plans for the year were to maintain existing businesses and possibly diversify.
He singled out wholesale distribution of medicine and food as areas for possible expansion.
