Hong Kong Parkview Group has recommended a special cash dividend as part of a proposal to sell various properties in Hong Kong and Britain to its major shareholder, the Hwang family, for HK$833.4 million.
After the sale, the company will focus on property developments in China, including hotel operations and trading of furniture. It said China's entry to the World Trade Organisation would benefit the group.
Hong Kong Parkview also proposed a capital restructuring under which the par value of the issued shares was reduced from HK$1 per share to 10 HK cents per share and every unissued share of HK$1 was subdivided into 10 shares of 10 HK cents each.
Conditional on the approval of the asset disposal and the capital restructuring, the company would pay a special cash dividend of HK$1.626 per share. This would mean a payout of HK$870 million based on 535.35 million issued shares.
The Hwang family, which owns 73.17 per cent of Hong Kong Parkview, is expected to receive about HK$636 million in special dividend.
Assets for sale include some luxury units at Hong Kong Parkview in Tai Tam and Manchester Lodge in Tai Hang, offices in Central and retail shops in Admiralty, together with a 0.22-hectare vacant site in Britain.