TNAG-2466-FCO40-3590-Economic-situation-in-Hong-Kong-1992 — Page 84

China Merchants buys stake in MTL

China Merchants Holdings is to take a 15 per cent stake in one of Hong Kong's biggest shipping terminal operators, Modern Terminals Limited, in a deal worth HK$1.35 billion (US$173 million). It will become the third biggest shareholder in the consortium behind Wharf Holdings with 25.6 per cent and Maersk Hong Kong with 1.65 per cent. As part of the deal, the UK Peninsula and Oriental Steam Navigation Co (P & O) will sell more than a third of its holding, and reduce its stake from 22.6 per cent to 14.5 per cent.

Dickson buys Charles Jourdan

Luxury goods retailer, Dickson Concepts, is to buy the world-wide rights to the Charles Jourdan trademark. Dickson is the largest licensee of the brand name. Under the transaction, Dickson Concepts will initially buy 20 per cent of the issued share capital of the Charles Jourdan group from Birsinia Holdings. The amount will be a cash consideration equal to 20 per cent of its re-adjusted net asset value and is expected to reach about 40 million French francs (HK$56 million). Birsinia is to sell the balance of the issued share capital in 1995, with Dickson having the option to trigger full purchase in 1993 or 1994 following determination of royalty income. On the basis of last year's royalty income, the balance would be about 128 million francs (HK$179 million).

Sincere profits from land sale

The Sincere Company has sold its building in Central to a China-backed company, Glory Sun, for HK$1.18 billion (US$15] million). The building was constructed in the early 1970s and the company is said to have made a profit of about HK$1 billion (US$128 million) from the sale.

Mandarin Plaza sold

Tsim Sha Tsui East Property, Mandarin Plaza, has been sold for slightly over HK$2 billion (US$256 million), in one of the biggest office property deals since 1989. The buyer is reported to be Hong Kong billionaire, Li Ka-shing, and the vendor is a consortium led by Japanese company Chisan which originally bought Mandarin PLaza for HK$1.8 billion (US$230 million) prior to June 4, 1989. The property has a total floor area of 580,000 square feet and a vacancy rate of only three to four per cent.

Citic Pacific profit

China-controlled, CITIC Pacific, has finished the year with an impressive 146 per cent rise in profit to HK$333 million (US$42.7 million). The strong growth was largely boosted by newly acquired subsidiaries and associates. In the past 15 months, CITIC Pacific has bought 12.5 per cent of Cathay Pacific Airways; 20 per cent of CTM, which has the exclusive right to operate public telecommunications services in Macau; and 99.6 per cent of Hang Chong Investment.

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