Charles Ho Tsu-kwok has agreed to pay about HK$1 billion to buy up to 72 per cent of Perfect Treasure Holdings. Mr Ho, president of Hongkong Tobacco, aims to turn listed Perfect Treasure - a trader of consumer-electronics products - into his Asian Internet flagship. Leung Chun-ying, convenor of the Executive Council, and former Goldman Sachs top executive William Mark Evans, will be appointed as non-executive directors. Mr Ho has no intention of injecting any businesses into Perfect Treasure. Mr Ho would use his wholly owned Luckman Trading to purchase 607.39 million new shares at 63.88 HK cents - a bill of HK$388 million. That is an 80 per cent discount to Perfect Treasure's last trading price of HK$3.20 before it was suspended last Friday. The company's net asset value is HK$1.02 per share. Luckman Trading would hold 55 per cent of the enlarged capital and would become its largest shareholder. Present controlling shareholders, chairman Sy Wong Chor-fong and her brother, deputy chairman Wong Shu-yui, would have their holding diluted from 45.15 to about 20 per cent. Luckman Trading would also purchase 976.63 million convertible preference shares, which it could convert into ordinary shares at anytime in the next two years at the same price. Upon conversion, Luckman would hold 72 per cent of the company at a cost of HK$623.87 million. The deal might collapse if the Securities and Futures Commission does not grant a waiver on a general offer.