SYDNEY: The family of Hopewell Holdings Ltd. Chairman Gordon Wu aims to take the Hong Kong developer private for HK$21.3 billion ($2.7 billion).
The bidding group is offering HK$38.80 per share, 47 percent more than the last trading price, the firm told Hong Kong’s stock exchange late Wednesday. The stock will resume trading Thursday.
Hopewell, which develops and invests in residential and infrastructure projects in Hong Kong and the Pearl River Delta, is facing property slowdowns in both the city and China.
A “year of recession” is among the bearish forecasts for China’s housing market next year, while a slide in home prices is already underway in Hong Kong.
The firm’s stock has fallen 20 percent from a January peak.
Wu, who’s aged in his early 80s, helms a property firm that traces its involvement in Chinese projects back to the nation’s economic opening up in the late 1970s.
Listed in Hong Kong since 1972, the company’s name is also associated with Hong Kong landmarks such as the Hopewell Center skyscraper.
The bidding group is being financed and advised by Citigroup Global Markets Asia Ltd. Wu and his family already own a 36.9 percent stake. - Bloomberg