Francis Leung Pak-to, known as the 'father of red chips' for his involvement in a string of listings of mainland companies, could not land a job with Sun Hung Kai Financial 30 years ago.
Today, he is poised to join the brokerage's listed parent, Sun Hung Kai & Co, as a non-executive director after his buyout fund CVC Capital Partners announced plans to take a 19 per cent stake in the company.
The fund said it would invest up to HK$2.14 billion in Sun Hung Kai by way of subscriptions of mandatory convertible notes and allotment of warrants of the company. If all notes and warrants were converted into shares, CVC would hold 19 per cent of the firm, making it the second largest shareholder.
Allied Properties, the largest shareholder, will have its stake diluted to 51 per cent from 62 per cent.
Leung, the fund's Greater China chairman, is expected to take up a directorship at Sun Hung Kai.
'When I completed my studies in Canada in 1980, I applied for my first job with Sun Hung Kai, which was the largest broker in town,' Leung recalled. 'I was rejected, so I joined HSBC's investment banking arm instead. At that time, I would never have imagined that I would join Sun Hung Kai as a director 30 years later.'
Leung said he would not take up a full-time position with the company, as he was too busy with CVC and as managing director of Yung's Enterprise Holding, a firm set up to invest in big projects on the mainland.
