Hopewell beats a final retreat from risky regional projects as renewed focus on Pearl River Delta revives firm's fortunes
Sir Gordon Wu Ying-sheung's property development flagship, Hopewell Holdings, has finally exorcised the ghost of the 1997 Asian financial crisis after divesting its defunct elevated rail and road project in Thailand for a net gain of $265 million.
Closing a bitter chapter in its disastrous foray into Southeast Asia's infrastructure sector, the group said yesterday it had agreed to sell the Thai subsidiary responsible for the project known as the Bangkok Elevated Road and Train System (Berts) to an independent party.
The project was the last of Hopewell's ill-starred regional assets to be divested following the sale of the Tanjung Jati power project in central Java for $2.38 billion and a toll-road project in south Luzon in the Philippines for $6.9 million in 2003.
The sale effectively draws a veil over the fiasco that followed Sir Gordon's regional expansion which after the Asian crash left the company saddled with $22 billion in debt.
The Berts deal has allowed Hopewell to sell its Thai subsidiary, Hopewell (Thailand), to an independent third party, United Success, for 500 million baht ($93.9 million).
Hopewell will also be entitled to a 20 per cent share of any successful action exceeding two million baht brought by Hopewell (Thailand) against the Thai government. A spokeswoman for Hopewell (Thailand) declined to reveal how much the company expected to win in damages should it succeed in court.