New Asia Realty and Trust Co yesterday announced a HK$1.016 billion bid to privatise subsidiary Realty Development Corporation (RDC) in a long-awaited group reorganisation by conglomerate Wheelock and Co.
Joining a string of restructuring exercises by blue-chip property groups, New Asia proposed to pay HK$3.20 a share for the 27.58 per cent of RDC it does not own. At stake are about 317.51 million RDC shares.
The offer represents a 28 per cent premium to RDC's closing price of HK$2.50 on December 6 but a 25.93 per cent discount to the net asset value of HK$4.32 as of September 30 set out in RDC's interim results. Following the offer, RDC's listing will be withdrawn.
The proposed privatisation is the first major corporate move since Peter Woo Kwong-ching returned to the chairmanship of Wheelock and associate Wharf (Holdings) in April.
Mr Woo left the group to enter the race to be SAR chief executive in 1997. He subsequently became chairman of the Hospital Authority and now heads the Trade Development Council.
The privatisation of RDC has been the subject of consistent speculation over the past few years. Analysts have criticised Wheelock's corporate structure as too complex and have urged it to streamline.
