Newspaper article International New York Times

$2.8 Billion Bid to Privatize Hong Kong Developer

Newspaper article International New York Times

$2.8 Billion Bid to Privatize Hong Kong Developer

Article excerpt

The Hong Kong parent company's 2014 bid for New World China Land fell through because of a rule that can give veto power to holders of a tiny stake.

New World Development, a Hong Kong property company, offered on Wednesday to privatize New World China Land, its property developer unit, in a deal worth about $2.8 billion.

New World Development is controlled by the family of the Hong Kong billionaire Cheng Yu-tung, which also controls the jewelry chain Chow Tai Fook, one of the world's largest. It tried to privatize the property unit in 2014 but failed to gain shareholder approval because of a so-called head-count test, required under a special accelerated buyout process, which takes into account not just the number of shares that are voted but also the number of shareholders voting.

New World Development had offered 6. …

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