Move to delay listing AS Watson surprises market
Initial public offering of Li Ka-shing's retailing arm had been expected to be launched this year
Li Ka-shing's decision to delay the listing of AS Watson surprised the market, but his sale of 24.95 per cent of the retail company to Singapore sovereign wealth firm Temasek will benefit shareholders, analysts said.
Hutchison Whampoa, the conglomerate controlled by Asia's richest man, announced it would sell the Watson stake to Temasek for HK$44 billion.
Watson operates more than 10,500 health and beauty product stores in 25 markets worldwide.
"The fact that it delayed the initial public offering was a surprise because the market was expecting it this year," said Kenny Tang Sing-hing, the general manager of AMTD Financial Planning.
Hutchison's sale reaped an exceptional gain for Hutchison and benefited its shareholders in the form of a generous dividend, Tang said.
Part of the proceeds from the sale would be used to pay a special dividend of HK$7 per share to Hutchison shareholders, the company announced yesterday.
On February 28, Li said Hutchison hoped to list Watson in Hong Kong and another stock exchange later this year. But at a press conference yesterday, he said the listing was unlikely to happen this year but might take place in two to three years.