Canadian company buys up 51pc of Regent Pacific Group

FINANCIAL adviser Vincent Chan has sold his 35 per cent stake in Regent Pacific Group as part of a deal that will see Toronto-based Altamira Management acquire 51 per cent of the investment firm.

Altamira, one of Canada's leading investment management firms, with assets under management of more than C$11 billion (about HK$61.27 billion), will buy Mr Chan's stake at a discount to the HK$5 a share general offer it will make to other shareholders.

The offer values Regent Pacific at US$69 million - three times the book value and eight times its price-earnings multiple. It is expected Altamira will get about 65 per cent of Regent Pacific because the company's management plans to keep its 30 per centstake.

Another major seller will be Inuvialuit Corp, a company owned by Canadian Eskimos. It will fetch $53 million for the 10 per cent stake bought in February, 1993.

Regent Pacific managing director James Mellon said Inuvialuit was selling due to internal asset allocation guidelines that required it to invest in public companies.

He said, however, that Inuvialuit would re-invest the proceeds in other Regent Pacific vehicles.

Last year, Regent Pacific and Inuvialuit formed a 40-60 joint venture offering investment management and advisory services to aboriginal groups around the world.