Shares in conglomerate Wheelock and its subsidiary New Asia Realty and Trust resumed trading after a seven-day suspension yesterday, only to plunge as investors expressed their disappointment with the group's restructuring plans.
New Asia shares skidded 8.16 per cent to HK$2.25, while Wheelock closed down 6.84 per cent at HK$5.45 as the market voted with its feet on New Asia's announced plans to privatise its subsidiary Realty Development Corp (RDC).
'Even a Christmas cracker makes a louder bang than this,' UBS Warburg analyst Franklin Lam said.
Shares in RDC, which had also been suspended, jumped 25 per cent to a 3.5-year high of HK$3.125 - just below the HK$3.20 per share that New Asia has offered for the 27.58 per cent, or 317.51 million shares, of the property company that it does not own. The deal represents a 28 per cent premium to RDC's closing price on December 6.
Rumours of a sweeping reorganisation, involving the privatisation of both RDC and New Asia, have circulated periodically in recent years. The suspension of all three companies on Monday last week heightened speculation that a privatisation announcement was imminent.
As the suspension dragged on, so hopes were raised that a thorough reorganisation plan would be forthcoming. But analysts said the eventual announcement was not what had been hoped for.