TNAG-2467-FCO40-3591-Economic-situation-in-Hong-Kong-1992 — Page 143

Sun Hung Kai's massive float

Sun Hung Kai Properties has launched a placement of 100 million shares raising HK$3.325 billion (US$426 million) to help fund its HK$20 billion (US$2.56 billion) worth of investments in China. The placement represents about 5.5 per cent of Sun Hung Kai's existing share capital and makes it the largest capitalised construction firm on the Hong Kong Stock Exchange. The company will now account for about 6.8 per cent of the Hang Seng Index's market capitalization.

China-backed firm raises HK$1.62b

Guangdong Investment has raised HK$1.62 billion (US$208 million) through a share placement to buy properties and brewery assets in China from its parent company, Guangdong Enterprises. The cash call involves the placement of 540 million new shares at HK$3 (US$0.38) each. Half of the shares were placed with Guangdong Enterprises and the other half with institutional investors.

DHL changes control

Control of the Hong Kong-based air express firm of DHL International has passed to an alliance formed by Japan Airlines, Lufthansa and Nissho Iwai (a Japanese trading company) which now controls just under 58 per cent of the company. A holding company has been formed by the three to retain their stake in the business. DHL International, which owns and operates the DHL network outside the United States, brought the three companies in as equity partners in December 1990. The three shareholders have now exercised options to lift their equity for control of the company.

Foster's in receivership by HKBank

The major shareholder of the Australian brewery giant Foster's Brewing Holdings, International Brewing Holdings, has been put to receivership by Vextin, a syndicate of banks led by HongkongBank Australia. Hongkong Bank spokesman, Stephen Martin, says it is unlikely the bank is facing a bad debt because the loan to International Brewing is secured against equity in Foster's Brewing.

Great Eagle profits soar

Great Eagle Holdings has registered an 89 per cent rise in profit to HK$172.8 million (US$22 million) for the six months ended March 31 largely due to substantial gains from the sale of office properties. Turnover increased by 24 per cent to HK$289 million (US$37 million) from HK$232 million (US$30 million).

Johnson Electric profits up

Micro-motor manufacturer Johnson Electric Holdings has reported a 26.5 per cent rise in profits to HK$283.2 million (US$36 million) for the year ended March 1992. Turnover increased by 10.1 per cent to HK$1.29 billion (US$165 million).

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