Asia’s richest man reorganises his assets
Asia’s richest man, Li Ka-shing is combining the twoflagship companies in his empire, while also spinning off the groups’ mainly Asian property interests, in a radical re-organisation that is bound to keep his bankers and lawyers busy for months.
A new company will control the non real estate assets of Hong Kong-based Mr Li’s Cheung Kong Holdings and Hutchison Whampoa. The seinclude the operator of Hong Kong’s busy sea port and UK retail chainSuperdrug.
一家新公司将控股总部设在香港的长江实业(Cheung Kong Holdings)和和记黄埔(Hutchison Whampoa)的非房地产资产。其中包括这家香港繁忙的海港码头运营商和英国零售连锁Superdrug。
A separate business, to be called CK Property, will takeon the two companies’ real estate holdings and will be spun out in an IPO.
The octogenarian Mr Li is rejigging his empire amid aproperty downturn in China, where economic growth is now also running at its slowest since the global financial crisis.
The two slides below from Cheung Kong’s presentationbelow show how the proposed restructuring of these already complex businesses would take shape.
Mr Li has been reviewing and reshaping his vast empirefor some time. Last year he scrapped a plan to IPO AS Watson, his retail division that owns Superdrug, and instead sold a $6 bn stake to Singapore wealth fund Temasek.
Mr Li won control of Hutchison Whampoa, a former British”hong” as the dominant trading houses in the onetime colony were known, in 1979 with much help from HSBC, who awarded him the sale of the business after it ran into trouble, and lent him the money to buy it.
The transaction marked the beginning of the end ofBritish dominance of the Chinese colony, and Mr Li has handsomely rewarded the British bank with investment banking business since.