HK’s PCPD shares rise 24.8% on possible sale of Beijing property

Source:Global Times Published: 2014-1-14 22:58:01

Richard Li Tzai-kai, chairman of PCCW Photo: IC

Pacific Century Premium Developments Ltd (PCPD), the property unit of Hong Kong billionaire Richard Li Tzai-kai's telecom and media conglomerate PCCW, saw its shares spurt 24.76 percent on Tuesday, as its trading resumes following an announcement Monday revealing that the company was in discussion to offload a property in Beijing.

PCPD suspended trading in its shares on the Hong Kong Stock Exchange on Monday morning and shortly afterward made the announcement of the sales plan, according to which PCPD is "at an advanced stage of discussion with an independent third party in relation to a possible transaction … [of its] interest in Pacific Century Place, Beijing."

"If materialized, the transaction is expected to constitute a very substantial disposal of the company," but there has yet to be any decision on the disposal, according to the announcement. No further details were given as to the value of the deal or a timetable for the transaction.

Shares of PCCW also resumed Tuesday ending up 0.28 percent after a one-day halt. The Hong Kong Hang Seng Index closed down 0.43 percent on Tuesday.

Rumors of PCPD's selling of the Beijing asset, an office and retail complex, have persisted since 2008. The Monday announcement renewed attention on the long-rumored deal, especially after last year's offloading moves in property markets in both the mainland and Hong Kong by Li's father, Li Ka-shing, known as "Superman" for his investment prowess.

Defending his selling, Li Ka-shing said in late November that it doesn't make any sense for his businesses to pull out of the markets, and the sales are merely normal commercial activities.

In contrast, Li Ka-shing has been shifting to investments elsewhere especially European markets in recent years. His latest investment is reportedly buying into BitPay, a US-based startup equivalent of PayPal, through his venture capital arm Horizons Ventures in late December.

Posted in: Economy

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