Cheung Kong (Holdings) is to buy equity and property assets of Can Do Holdings to offset HK$420 million in debt receivables. The transaction is part of the blue chip's investments in a group of companies under the umbrella of property developer Tem Fat Hing Fung (Holdings) disclosed last month. Tem Fat Hing Fung yesterday offered further details of Cheung Kong's investments in the company, its gold bullion-trading arm RNA Holdings and its property-investment arm Can Do Holdings. Upon completion of the deal, Cheung Kong will have significant stakes in the three companies. Particularly, Cheung Kong will be RNA's largest shareholder, which will give Cheung Kong effective access to the mainland gold bullion market. Under the Can Do deal, Cheung Kong agreed to acquire a property portfolio from Can Do for HK$234 million. A key component of the portfolio is 151 residential units and 79 car park spaces of Cheung Fat Gardens in Shanghai, a residential project developed by Cheung Kong in the early 1990s. Can Do will issue to Cheung Kong HK$171 million worth of preference shares of Tem Fat Hing Fung and RNA - substantial shareholders of Can Do. A total of 965.25 million Tem Fat Hing Fung preference shares will be issued for HK$100 million. The preference shares can be converted at 10.36 HK cents per share. Can Do will also issue to Cheung Kong 293.63 million RNA preference shares at 24.18 HK cents a share for HK$71 million. The remaining HK$15 million debt will be offset by Cheung Kong's subscription for 60 million new Can Do shares. Upon completion of the deal, Cheung Kong will hold 25.83 per cent of RNA, 25.31 per cent of Tem Fat Hing Fung and 16.58 per cent of Can Do. The Chan family - led by Raymond Chan Fat-chu and brother Alexander Chan Fat-leung - is able to maintain its substantial shareholder status in the three companies. The family will hold 26.33 per cent of Tem Fat Hing Fung, 8.49 per cent of RNA and 8.88 per cent of Can Do. It is expected that Cheung Kong will have representatives on RNA's board of directors. According to a joint statement of the Tem Fat Hing Fung group of companies, the Can Do transaction will allow Can Do to reduce debts from HK$652 million to HK$245 million. The HK$407 million reduction in debt represented principal excluding interest owed to Cheung Kong. In a separate deal, Can Do will receive HK$20 million in cash by issuing 80 million new shares to George Chan Yuen-ming who is unrelated to the Chan family and is the controlling shareholder of Hong Kong-listed calculator manufacturer Tomorrow International Holdings. The subscription price is 25 HK cents a share, a 29.53 per cent premium to the closing of 19.3 HK cents on the last trading day on March 23. George Chan will hold 9.32 per cent of Can Do. Sources close to Can Do said George Chan was a creditor of Can Do, with exposure being in the form of mortgage loans.