Privatization Plans for Chinese Estates Holdings Fails, Sending Shares Downward
Posted on 12/20/2021
Chinese Estates Holdings Limited is a major Chinese investment holding company, based in Hong Kong. Its subsidiaries are principally engaged in property investment and development, brokerage, securities investment, and money lending. Chinese Estates Holdings is listed in Hong Kong. Shares of Chinese Estates Holdings dropped below the HK$ 2.90 support level, where it had traded before the company disclosed its privatization offer on October 7, 2021. Chinese Estates Holdings had disclosed its proposed privatization won’t proceed as it failed to receive a majority of shareholders’ votes.
Hong Kong billionaire Joseph Lau and his wife Chan Hoi-wan are large owners of Chinese Estates Holdings. They made an offer to buy all the Chinese Estates shares it didn’t already own for HK$ 1.91 billion. They did this is a move to protect the company from the financially-hit mainland Chinese property sector.
In November 2020, Chinese Estates disclosed plans to sell all its China Evergrande Group shares. Chinese Estates Holdings sold Kaisa senior notes in October 2021 at a loss.
Joseph Lau became the majority shareholder of Chinese Estates Holdings when he acquired a 43% stake in the company through Evergo Industrial Enterprise in 1986.