Polytec Holdings has taken control of Kowloon Development by acquiring a 51.5 per cent stake from the controlling shareholders for HK$892.6 million. The takeover was launched by Polytec's wholly owned subsidiary Intellinsight Holdings. The takeover bid values Kowloon Development at HK$1.73 billion. Intellinsight will buy 249.3 million shares from Kowloon Development chairman Ng Siu-chan and other key shareholders at HK$3.58 each. The price represents a 6.87 per cent premium above its closing price at HK$3.35 on December 7. Intellinsight will make an unconditional offer for outstanding shares at the same price of HK$3.58 each. Shares of Kowloon Development closed at HK$3.50 yesterday. Intellinsight is owned by Or Wai-sheun's family. Mr Or is engaged in property development and investment as well as textiles and garments in Hong Kong and Macau. The group intends to retain the listing status of Kowloon Development. In a joint announcement with Kowloon Development, Intellinsight said its directors believed the property development and investment business of Kowloon Development was complementary to the operations of Polytec. Kowloon Development would continue to focus on property investment and development in Hong Kong and explore business opportunities by building on the experience of Polytec. Polytec and Intellinsight intend to sell a portfolio of commercial and residential property interests in Hong Kong to Kowloon Development and details would be announced in the near future. Polytec has a residential development in Yuen Long. Its sister company Hantec Investment had offered a bid for a residential lot in Tsuen Wan at a Government auction in October last year but was defeated by a consortium of Cheung Kong (Holdings), Sino Land and K Wah International (Holdings). Hantec recently submitted a tender offer for Mass Transit Railway Corp's residential and park-and-ride development above Choi Hung Station worth more than HK$800 million but failed to clinch the contract. Kowloon Development's flagship is the Pioneer Centre in Mongkok, which is estimated to be worth more than HK$2.2 billion.