Independent shareholders have scuppered plans to privatize a Hong Kong property giant’s mainland unit, Ming Pao Daily reported Tuesday.
New World Development Co., Ltd. (00017.HK) had proposed privatizing mainland unit New World China Land Ltd. (NWCL) (00917.HK), estimated to be worth HK$18.6 billion (US$2.54 billion).
A vote in the afternoon among NWCL investors sent the proposal down the drain after it failed to get support from half of the shareholders at the meeting. About 66 percent of NWCL’s independent shareholders holding only 3.23 million shares, or 0.16 percent of the total, said no to the idea.
New World Development proposed the privatization plan in a regulatory filing in March, offering HK$6.80 per share in cash. It also planned to raise up to HK$14 billion (US$1.8 billion) by selling shares, part of which would have been used to fund the move.
After the rejection, New World Development chairman and executive director Henry Cheng Kar-shun said the company won’t be embarking on any similar moves anytime soon. He said share sales to raise funds will continue and proceeds will be used to finance existing projects and buy land.
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