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Hopewell receives takeover proposal
Posted on Wednesday, 05 December 2018 11:55
Shares in Hopewell Holdings have been suspended from trading pending the release of an announcement related to a proposal for the privatisation of the Hong Kong-listed infrastructure and property company.

The investor in the hotel and hospitality, power and commercial and residential building sectors had a market capitalisation of HKD 22.98 billion (USD 2.94 billion) when it last closed at HKD 26.45.

Hopewell had total debt of HKD 1.40 billion, net cash of HKD 8.28 billion, total assets of HKD 55.90 billion, shareholders’ equity of HKD 52.30 billion and debt to asset ratio of 2.5 per cent, as of 30th September 2018.

Chairman Gordon Ying Sheung Wu currently holds 28.1 per cent of the company and his son, vice chairman Thomas Jefferson Wu, has a 3.3 per cent stake.

Hopewell generated total revenue of HKD 1.45 billion in the six-month period ended 30th September 2018, representing a 55.0 per cent decrease from HKD 3.25 billion in H1 2017.

Earnings before interest and tax fell to HKD 472.00 million from HKD 1.07 billion over the same timeframe.

Core profit attributable to owners of the company decreased 44.0 per cent to HKD 394.00 million, or HKD 0.45 apiece, from HKD 709.00 million in H1 2017.

A total of 12 public takeovers targeting companies incorporated in China and Hong Kong have been announced so far this calendar year, according to Zephyr, the M&A database published by Bureau van Dijk.

The largest of these involves Midea acquiring the remaining 47.3 per cent stake not already held in Wuxi Little Swan for USD 2.07 billion.

Sinotrans’s announced takeover of the 39.1 per cent balance in Sinotrans Air Transportation Development for USD 1.15 billion was the only other worth more than USD 1.00 billion.

© Zephus Ltd