Ailing Chinese Estate owner hands HK$17 billion of assets to his wife and son

Joseph Lau Luen-hung, 65, the controlling shareholder of Chinese Estates Holdings, has transferred all his 74.99 per cent shareholding with an estimated worth of HK$16.99 billion (US$2.17 billion) to his wife and son due to a “very unstable health condition”.

The share restructuring, which has been implemented and completed on Wednesday, means chairman Lau Ming-wai, the son of Joseph Lau, will indirectly hold 476.4 million shares representing 24.97 per cent in Chinese Estates through Century Frontier.

Joseph Lau has also distributed 954.2 million shares representing 50.02 per cent in the company to Sino Omen, whose shares are held by his wife Chan Hoi-wan as a trustee for her minor children Lau Chung-hok and Lau Sau-wah in the ratio of 65:35.

“In view of Joseph Lau’s very unstable health condition and the need to implement the restructuring during his lifetime, the company and all its directors confirm they are satisfied that there are exceptional circumstances for the implementation of the restructuring before the expiry of the current black out period,” according to the company’s filing to the Hong Kong stock exchange.

Substantial shareholders or senior management of listed companies are banned from reducing or raising their stakes within 30 days of a results announcement.

“(Joseph) Lau will still go ahead with the restructuring, which indicates it is his emergency succession plan and it cannot wait any longer,” said Kenny Tang Sing-hing, chief executive of Junyang Securities