Chinese Estates sells $632m assets to family
Chinese Estates Holdings and its wholly owned subsidiary Paul Y Holdings have sold $632 million of property-based assets to family firms controlled by the listed company's executive director, Joseph Lau Luen-hung.
Mr Lau holds about 62 per cent of Chinese Estates, a firm which made bold purchases during the property downturn and has seen a turnaround in its fortunes, reporting profit of $1.15 billion last year.
Two British Virgin Islands companies controlled by Mr Lau for the benefit of family members will buy the assets.
The Lau family has a history of privatising public company assets, a common practice among Hong Kong's family companies, but one that increasingly faces scrutiny.
Independent non-executive directors at the firm advise minority shareholders whether to vote for the deal. The scheduled completion date is March 31 next year.
Chinese Estates said the proceeds would be used for debt repayment and general working capital.
The company announced it would pay a dividend for the first time in five years in March with the low-profile Mr Lau taking the unusual step of announcing the results personally.
Two weeks later, he sought to place a substantial block of personally held shares in Chinese Estates.
