A group led by Malaysian billionaire Quek Leng Chan offered HK$8.25 billion (US$1.1 billion) to take Guoco Group private after the financial and real-estate company trailed a rally in Hong Kong stocks.
The group is offering HK$88 a share, 25 per cent more than the closing price before the stock was suspended on December 4, according to a statement to the Hong Kong exchange. Guoco jumped as much as 29 per cent in morning trading.
The proposed privatization would give Guoco Chairman Quek more control of the company’s 15 per cent stake in Bank of East Asia, Hong Kong’s biggest family-run bank, worth about HK$9.5 billion. Quek’s net worth is estimated at US$3.9 billion today, according to the Bloomberg Billionaires Index. Guoco had fallen 2.4 per cent this year before today, trailing a 21 per cent gain in the benchmark index.
A buyout “will provide the offeror group with greater flexibility to support its future business development,” Guoco said in the statement.
Guoco was 29 per cent higher at HK$91 as of the midday break in Hong Kong, heading for the biggest increase since April 2001.
Wednesday’s offer was made by a subsidiary of Hong Leong, which is 49 per cent controlled by Quek.
