SHOUGANG Corp is buying from Li Ka-shing shares in construction firm Paul Y-ITC in a deal worth $150.67 million. The deal is being undertaken by Kader Investment Co, a Shougang company, and involves the purchase of 75.34 million shares at $2 each from two firms owned by Mr Li. Paul Y-ITC is expected to be listed by its parent, International Tak Cheung Holdings (ITC), through an issue of 190.25 million shares at $2 each. Kader said: ''The directors consider that given that Paul Y-ITC is engaged in the building construction industry the acquisition by Kader of the shares will provide opportunities to complement the property investment activities of the Kader group.'' Details of the listing are expected to be published in a prospectus on September 7, with applications for shares opening on September 10. In February last year, Paul Y became a wholly owned subsidiary of ITC in a deal worth $35 million. Then in February this year Cheung Kong (Holdings) took a 50 per cent stake in the group for some $76.5 million. On completion of the transaction, Cheung Kong will have 40.1 per cent of Paul Y-ITC and HutchVision 9.9 per cent. Under the current deal, Earnswell Holdings, a wholly owned subsidiary of Cheung Kong, is selling some 18.83 million of the shares being bought by Kader. Marsiling Investments is the other seller, disposing of 56.5 million shares. The company is a subsidiary equally owned by Hutchison Whampoa and Mr Li. In May, Shougang Holding (HK) and Cheung Kong swooped to take a $528 million 74 per cent stake in Kader. Kader is expected to finance the latest deal through internal resources. Shougang has other listed interests in Hong Kong, including Eastern Century Holdings and Santai Manufacturing. On August 13, Kader announced it would take over Hoi Sing Holdings in a deal to buy a 51.99 per cent interest in the company for $174 million. Kader also took a 1.11 per cent stake, three million shares, in Four Seas Mercantile Holdings on August 10. Four Seas was then due to be listed in an offering of 67.5 million shares to raise $270 million.
