Chinese Estates key shareholder to gain billions from HK asset sale
Chinese Estates controlling shareholder stands to pocket HK$3.9b if special dividend is paid
Chinese Estates Holdings will sell a prime commercial building, The One, in Tsim Sha Tsui to controlling shareholder Joseph Lau Luen-hung in a deal worth up to HK$7.78 billion.
As part of the deal, Lau will buy a wholly owned subsidiary of Chinese Estates that owns the commercial building at 100 Nathan Road near the Tsim Sha Tsui MTR station.
The One, a 29-storey, 400,000 sq ft building, is the city's tallest retail complex.
The company said the sale proceeds would amount to HK$4.65 billion, if the property's outstanding bank loans have not been paid fully upon the completion of the transaction.
As of September 30, the company's outstanding bank loans amounted to HK$3.24 billion.
In a filing with the Hong Kong stock exchange, it said the directors "intend that a majority part of the net proceeds derived from the disposal transaction may be used to pay one special dividend to shareholders on or after the completion date".
Lau, who has a 74.99 per cent stake in the company, will be entitled to receive nearly HK$3.9 billion if the board decides to distribute all the HK$4.65 billion it gets from the sale as special dividend.