Wharf Holdings Ltd

Wharf shares rally on plan to spin off property unit via Hong Kong IPO

PUBLISHED : Tuesday, 05 September, 2017, 10:14am
UPDATED : Tuesday, 05 September, 2017, 6:30pm

Shares of Wharf (Holdings) rose by the most in almost a month after the company filed an application to the Hong Kong stock exchange to spin off its property unit for a separate listing on the main board.

Wharf shares rose 3.6 per cent to HK$76.65, the highest since August 9, after jumping almost 6 per cent in earlier trading.

The conglomerate said on Monday night that it planned to hive off its subsidiary, Wharf Real Estate Investment into a separate listing - a portfolio that owns six investment properties such as its flagship shopping malls Harbour City in Tsim Sha Tsui and Times Square in Causeway Bay. It has an estimated value of HK$264.5 billion (US$33.8 billion).

The application for the listing was submitted to the stock exchange on Monday, according to the company’s filing to the exchange.

The proposed spin-off will be implemented on the basis of one Wharf Real Estate share for every one Wharf share held.

Directors intend to declare a special interim dividend after the spin off.

In August, Wharf chairman Stephen Ng Tin-hoi unveiled the spin-off intention and said after the proposed demerger the newly listed unit will invest in retail, office and hotel properties in Hong Kong.

Following the spin off, Wharf will not retain any interest in Wharf Real Estate. But Wharf will remain as a 62 per cent-owned subsidiary of Wheelock.

With additional reporting from Karen Yeung