Ciga, Star East put media face on property developer and investor with Sing Pao injection

Shares in property developer and investment company Huey Tai International had a rocky ride yesterday after an announcement of its sale and the injection of Chinese newspaper Sing Pao Daily by the new owners.

Huey Tai shares surged 47 per cent to 42 HK cents in their first few hours of trading after a week's suspension pending the announcement. But later in the day, the counter retreated to close at 32.5 HK cents, narrowing the gain to 14 per cent.

The volatility came as locally listed China Internet Global Alliance (Ciga) and Star East Holdings announced that, through joint venture Gold Brilliant, they would buy 38.65 per cent of Huey Tai from chairman Peter Chan Boon-ho and his connected parties at 22 HK cents per share.

The purchase price, which represents a 31.25 per cent discount to yesterday's closing price and an 85.9 per cent discount to the net asset value of HK$1.56 per share, will be settled in cash.

Ciga and Star East, under another agreement, will recover part of the cost by selling their three media arms - Optima Media Holdings, Komatic and China Youth - to Huey Tai for HK$110 million.

Earlier this month, Optima Media, another venture between Ciga and Star East, acquired Sing Pao Daily. Optima paid about HK$150 million for the 61-year-old local Chinese newspaper.

It has a circulation of about 70,000.