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SCMP Reporter

IN a deal worth $110 million, international property consultants Vigers Hong Kong has been bought out lock, stock and barrel by a consortium of mainland Chinese, Singaporean and local interests.

    The buyer is called Choiceproof International, established specially for the purchase, and encompasses the Modern Group, which is an investment venture led by prominent Chinese businessmen with strong mainland connections.

    Additional partners are Capital Asia Ltd, a Hong Kong-listed company, a Singaporean investment company and local entrepreneurs.

    Speaking at a meeting of the new board, made up of a Vigers' team and representatives of the new owner, Michael Mann said Vigers had welcomed the approach when it came in August, though it was not quite what they had initially intended.

    ''Some time ago, the directors of Vigers decided that, to expand in Hong Kong and into China and Southeast Asia, we needed to look for investors to give us a stronger base,'' said Mr Mann, one of the six former equity directors of the formerly privately owned company.

    Subsequently, while trawling for likely investors, Choiceproof International promptly jumped the queue and made an offer.

    ''We were pleasantly surprised it happened so quickly,'' Mr Mann added.

    Surprise was also their reaction to the proposal - not the envisaged 40 to 50 per cent equity deal, but a 100 per cent acquisition of Vigers.

    They accepted, for several reasons, according to fellow former equity director Gareth Williams.

    ''Choiceproof provided mainland backing, they would get us into China with the prospect of expanding our client base in Hong Kong and Southeast Asia,'' he said.

    ''It's a sign of the times; several of the other big property firms are trying to form joint ventures with Chinese interests at the moment,'' said Mr Mann.

    There will be no management changes as a result of the sale and the original board stays on, for a further two years at least, with the addition of six additional members from Choiceproof.

  ''Three of these will be active, the others won't,'' explained Mr Williams.

  There are no plans to float Vigers on the stock exchange.

    One of the most remarkable aspects of the takeover is that Nelson Wong, who left his job at Vigers as senior manager in the commercial department looking after China in July, returns as vice-chairman and chief executive officer of the new-look Vigers Hong Kong.

       Vigers is now the second largest property consultant in the region, behind Jones Lang Wootton.

    Its immediate plans are focused on expansion into China by 1994 with Beijing, Shanghai and Guangzhou targeted as sites for new international offices.

    ''The new company will do much better,'' said Mr Wong, stressing that was not a criticism of the previous regime.

    ''It will be much more aggressive.''      There was a great need for companies such as Vigers to go into China and turn the property market into a sophisticated business, he added.

            Mr Wong said business colleagues, particularly Chinese, had wondered why Choiceproof was paying in excess of $100 million for a company with no tangible assets.

    ''The ultimate thing for us is that Vigers is a reputable company in the market, it carries a good name and there is considerable expertise in the firm,'' he said.

    ''So, it's a daring move, but nothing will change in the day-to-day running of the company, which has 151 years of excellence behind it,'' he added.

    Mr Wong also said the company was not troubled about doubts of the effects of any possible market slump, either here or in mainland China.

    ''The property consultancy business is indispensable in any mature property market,'' he said.

        The prospect of 1997 held no fears for Choiceproof International, because, boom or bust, properties still changed hands and buildings still had to be managed.

    In fact, said Mr Mann, Vigers had done well in the past in litigation business. ''In a bad market, we set up a special department called Intensive Care to deal with the victims,'' said another board member.

    ''It's not a case of people from both sides; we are one family now with a common goal, and we need to stress that,'' said Mr Wong. The new directors, with seats on the board as a result of the takeover, include Gary Hu Gang, Martin Wong, Nelson Wong, Alex Wong, Yau Chee-siew, Alan Lau, Yiu Kuen-lui, Raymond Fong and Chan Sui-kwun.

    The seven former Vigers directors who were shareholders and are now executive directors include Michael Mann, Bruce Walker, Gareth Williams, Lyall Alexander-Webber, David Cheung, Wilson Nei, Stan Wong.



$110 million seals deal