HONG KONG, Feb 27 (Reuters) - Shares of Hong Kong property group Wheelock and Co jumped 50% after it announced a plan to take the company private in a HK$48 billion ($6.16 billion) deal.
Wheelock said in a statement on Thursday that former chairman Peter Woo, who holds almost a 70% stake in the company, had offered an aggregated amount of HK$71.90 per share to take the group private.
The amount comprises of one share each of Wheelock’s two subsidiaries - Wharf Real Estate Investment Company and Wharf Holdings - and a cash consideration of HK$12.
Wheelock shares, which resumed trading in the afternoon following the announcement, jumped as much as 50.3% to hit an all-time high of HK$71. Shares had been suspended from trading since Monday.
Wheelock said the privatisation would unlock shareholder value through the elimination of the historical holding company discount of the company’s stake in Wharf REIC and Wharf Holdings, and give shareholders higher dividend income from the two subsidiaries.
The company also said the offerer does not intend to increase the offer.
Wharf REIC fell as much as 6.2% to HK$37.70, an all-time low, while shares of Wharf Holdings remained suspended.
$1 = 7.7917 Hong Kong dollars Reporting by Clare Jim and Donny Kwok; Editing by Tom Hogue and Amy Caren Daniel