Cofco to inject HK$14b assets into Hong Kong unit

Cofco, the mainland's largest food trader and processor, is injecting mainland property assets valued at HK$14.17 billion into its Hong Kong-listed property unit, Hong Kong Parkview Group, in a back-door listing.

The asset injection - covering commercial, office and hotel properties - will make Hong Kong Parkview "the overseas-listed platform of Cofco, holding its mixed-use complexes as well as other commercial properties", Hong Kong Parkview said in an announcement to the Hong Kong exchange yesterday.

Hong Kong Parkview will be renamed Cofco Land after the deal is completed.

Hong Kong Parkview will buy shares in Cofco's companies - which own properties in locations such as Beijing, Chengdu, Hainan and Shanghai - through the sale of 2.32 billion new shares to institutional investors.

The shares will be sold at HK$2 each, representing a discount of 50 per cent on the previous closing price of HK$4 on September 17.

Hong Kong Parkview, which resumed trading yesterday, saw its shares close 8 per cent lower at HK$3.68.