HK tycoons reap windfall from quick turnover of 29pc stake in Harbin group, in a deal that sparked takeover war
A leading board member of Hong Kong's Community Chest, Lawrence Yu Kam-kee, is among seven key investors to have reaped $131 million from a quick flick of Harbin Brewery Group shares to Anheuser-Busch, prompting a major takeover battle with SABMiller.
Mr Yu was one of four Hong Kong tycoons and three companies who secured rights to a 29 per cent stake in the company from the Harbin municipal government and re-sold it to Anheuser through British Virgin Islands firm Global Conduit Holdings. Global Conduit is run by David Sun, a former consultant with Belgian beer giant Interbrew.
It also emerged yesterday that Mr Sun has a direct business relationship with Harbin Brewery director Peter Jeva Au and chief executive Peter Lo. Mr Au and Mr Lo are directors of a private fund, China Enterprise Capital, which is in the process of raising cash for investment on the mainland. Mr Sun is part of the fund's management.
Despite the link, Mr Au said he knew nothing about Global Conduit except for what has been publicly disclosed. 'I really can't comment on Global Conduit,' he said. 'I really want to find out exactly what Global Conduit is. Private companies don't owe it to anyone to tell them who they are.'
He added that he was oblivious of negotiations Mr Sun had with the Harbin government. 'I have not been in any decisions with the Chinese partner. I have not talked to any of my board members about selling anything to anyone.'
Harbin Brewery executives are set to reap a $110 million windfall in the event of a takeover, thanks to the conditions of share options they were granted under a deal with SABMiller. The South African-based brewer has a 29 per cent stake in the company and is vying for control with Anheuser.