Guoco Group shares jump 30 per cent on privatisation
Malaysia's Hong Leong offers to pay HK$8.25 billion - or HK$88 per share - to take its HK-listed investment holding company private
Guoco Group's share price jumped 30.6 per cent to HK$92.05 yesterday, the highest level in over 15 months, after the Hong Kong-listed firm announced its privatisation.
Trading was heavy, with 4.49 million shares changing hands.
Hong Leong, a Malaysian company, offered to pay HK$8.25 billion, or HK$88 in cash per share, to take the firm private, Guoco announced yesterday. The price is at a 24.8 per cent premium over Guoco's share price of HK$70.50 before it was suspended on December 4, and values the firm at HK$28.96 billion. This is the second-biggest privatisation of a Hong Kong-listed firm since 2000, behind the US$1.7 billion privatisation of Citic International Financial in 2008, according to Dealogic.
Malaysian tycoon Quek Leng Chan is the chairman of both Hong Leong and Guoco. Quek owns 74.85 per cent of Guoco, according to the Hong Kong stock exchange website. He also owns 49.27 per cent of Hong Leong, a holding company for firms engaged in financial services, manufacturing, distribution, hospitality, leisure and investment, Guoco said.
"The privatisation of Guoco will simplify the shareholding structure of Guoco and improve corporate efficiency," it said. "Full ownership of Guoco by Hong Leong will facilitate integration between Hong Leong and Guoco, and will provide Hong Leong [with] greater flexibility to support the future business development of Guoco.