CKH Holdings shares rise as reorganisation begins
Name change marks completion of first stage in group's biggest restructuring since 1997
Billionaire Li Ka-shing's CK Hutchison Holdings (CKH Holdings) rose on its trading debut on the stock exchange yesterday following a name change that marks completion of the first stage in the group's biggest restructuring since 1997.
CKH Holdings, which was formerly Cheung Kong (Holdings), saw its shares increase as much as 1.71 per cent to HK$152.7 at one point before closing at HK$151.5.
"The share performance reflects investor support of the restructuring plan. There is still upside potential as the market expects more mergers and acquisitions will follow after the completion of the restructuring (in June)," said Alvin Cheung Chi-wai, an associate director of Prudential Brokerage.
Cheung Kong closed at HK$153.1 before its shares were suspended on March 10, which just happened to be the day the company's shares went ex-dividend. Taking into account the fact that Cheung Kong declared a final dividend of HK$3.016, the share price should be adjusted to HK$150.084.
Cheung said those who bought Cheung Kong shares before or on the ex-dividend date would receive the HK$3 final dividend and enjoy the share price appreciation.
On Tuesday, Cheung Kong Property Holdings (CK Property), a new entity formed by Cheung Kong, announced it had submitted an application to the Hong Kong stock exchange to seek a separate listing.