Chinese Estates stock up after selling Windsor House in Hong Kong to majority shareholder
Shares of Chinese Estates Holdings rose on Monday after the firm announced last week that it would sell its commercial building Windsor House in Causeway Bay to its controlling shareholder, Joseph Lau Luen-hung, for as much as HK$12 billion.
The stocks of the firm climbed 3.17 per cent to HK$26 at 11 am on Monday.
On December 23, Chinese Estates said Lau, who owns 74.99 per cent in the company, agreed to purchase the retail-office building.
Chinese Estates said it would generate an estimated HK$5.84 billion in net proceeds from the asset disposal.
“It is currently intended that the majority part of the net proceeds which may be generated from the disposal (be) used to pay a special dividend to the shareholders,” according to the company filing to the Hong Kong stock exchange. “ A small portion of such net sale proceeds will be used for general working capital of the group.”
Lau will receive up to HK$4.4 billion assuming the company distributes all HK$5.84 billion as special dividend.
Last month, Chinese Estates sold its MassMutual Tower in Wan Chai for HK$12.5 billion to Evergrande Real Estate Group. On December 22, the company announced it would distribute HK$3.81 billion in a special dividend to shareholders after the sale of MassMutual Tower. Lau alone will receive HK$2.8 billion.