(23 November 2009, Hong Kong) NWS Holdings Limited (“NWS Holdings” or the “Group”; Hong Kong stock code: 659) today announced that the Group has conditionally entered into an agreement with Hai Tong (HK) Financial Holdings Limited (“Hai Tong (HK)”) to dispose of the Group’s interest in 373,434,720 shares of Taifook Securities Group Limited (“Taifook Securities”; Hong Kong stock code: 665), which represents approximately 52.86% of its entire issued share capital. At an offer price of HK$4.88 per share, total consideration for this disposal amounts to over HK$1.8 billion payable in cash. The Group expects total gains of approximately HK$0.7 billion from this disposal. According to the relevant agreement, NWS Holdings will continue to hold 9% shareholding in Taifook Securities upon completion of the transaction.
The disposal of the majority shareholding of Taifook Securities is part of NWS Holdings’ continuing corporate strategy to consolidate its service-related businesses in order to enhance shareholder value and to refocus its efforts and resources on other stable growth areas such as infrastructure. Furthermore, the sale proceeds from the disposal will strengthen the Group’s financial position and will further enhance its cash status. This will enable the Group to deploy more capital to invest in large-scale infrastructure projects, thereby enhancing shareholder returns and increasing the net assets of the Group.
On the other hand, the transaction will also allow Taifook Securities to further broaden its retail brokerage client base from Mainland China, potentially opening a doorway for more opportunities and securities products surrounding its asset management and corporate finance businesses in the fastest growing country of the world.
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This press release is also available on the Group’s website ( www.nws.com.hk).
NWS Holdings Limited (“NWS Holdings”, Hong Kong stock code: 659), the infrastructure and service flagship of New World Development Company Limited (Hong Kong stock code: 17), embraces a diversified range of businesses in Hong Kong, Mainland China and Macau. Its Infrastructure portfolio includes Roads, Energy, Water and Ports & Logistics projects. Its Services division comprises Facilities Management (the management of Hong Kong Convention and Exhibition Centre and Free Duty), Contracting & Transport (Hip Hing Construction, NWS Engineering, and bus and ferry services) and Financial Services (Taifook Securities and New World Insurance).
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NWS Holdings Limited
