Hong Kong’s Wheelock mulls raising its stake in subsidiary Wharf
Share purchases have boosted firm's holding in the subsidiary to about 57 per cent
Hong Kong-listed conglomerate Wheelock & Co will consider increasing its stake in subsidiary Wharf (Holdings), chairman Douglas Woo Chun-kuen told the company's annual general meeting yesterday.
"Wharf is the company's major long-term investment," Woo replied when a minority shareholder asked why it was buying Wharf shares. "If the price is attractive, the company will consider [further] buying," he said.
Wheelock said it had acquired 78.4 million Wharf shares, representing 2.59 per cent of Wharf's issued capital, between June 16 last year and April 30. It continued its share purchases early this month and now holds about 57 per cent of Wharf.
Wheelock shares fell 0.115 per cent yesterday to close at HK$43.60. Wharf closed down 0.091 per cent at HK$55.05, compared with a 52-week high of HK$63.90.
Analysts said investors were concerned about the impact of a structural downturn in mainland tourist arrivals on upmarket mall landlords in the city, including Wharf.
Wharf is one of the leading commercial landlords in Hong Kong, with its flagship retail assets Harbour City in Tsim Sha Tsui and Times Square in Causeway Bay.