HKCB Bank Holding, which revealed interim attributable profits down 45 per cent yesterday, saw its share price fall sharply as doubts were raised over a planned share sale to China Resources Enterprise (CRE).
The stock fell 12.8 per cent to $1.94 yesterday on relatively heavy trading as rumours spread CRE failed to obtain the necessary mainland approval to become a controlling shareholder.
No officials from HKCB or CRE were available for comment. In early July, CRE launched a general offer for all shares at $2.97 each, valuing HKCB at $3.89 billion.
In the six months to June, HKCB's attributable profit dropped to $107.33 million from $195.07 million in the same period last year.
The company holds a 100 per cent interest in the 26-branch Hongkong Chinese Bank, a 100 per cent interest in Lippo Asia, a 50 per cent interest in Lippo Protective Life Insurance and a 51 per cent stake in Lippocean Winterthur Underwriting Management.
HKCB's operating profit slumped 67.1 per cent to $104.33 million.
