TNAG-2527-FCO40-3696-Hong-Kong-China-Relations-Committee-1992 — Page 133

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

GF 323

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23

the privately owned Hang Chong Investment(20) at a cost

of HK$6.94 billion(21), CITIC Pacific planned to raise

about HK$2 billion through the placement of 1.29 billion

new shares at HK$1.55 each, with the remaining HK$500

million needed for the acquisition coming from internal

resources and from borrowing, if necessary. Before the

acquisition of Hang Chong Investment, CITIC Pacific's major

investments included a 38.3% stake in the Hong Kong Dragon

Airlines Ltd.. a 12.5% stake in the Cathay Pacific Airways

Ltd., a 20% stake in the Macau Telecommunications, and

properties valued at around HK$647 million. Earlier on,

CITIC (HK) teamed up

with Swire Pacific Ltd. to increase

their holdings of Hong Kong Dragon Airlines Ltd. by 17%.

CITIC (HK) has always been the most active PRC-interest

company participating in major investment deals in Hong

Kong.

34.

In respect of participation by PRC-interest

companies' in Hong Kong's infrastructural development,

China's largest contracting firm, China State Construction

Engineering Corporation, together with a Dutch partner, Van

(20) Hang Chong Investment is the holding company for car distributor Dah Chong Hong and holds investments in airlines, utilities, properties and telecommunications. Analysts put an estimate of HK$6 billion on the total value of its properties around the world in Hong Kong, the United States, Canada, Japan and Singapore.

(21) CITIC Pacific is the listed vehicle of CITIC (HK)

which holds 49% of the share capital of the former.

In the acquisition of Hang Chong Investment, CITIC Pacific has a stake of 36% in the consortium.

The other partners include Li Ka-shing (19%), Chow Tai Fook Enterprises (18%), Peregrine Investment Holding (8%), Kerry Trading

(7%), CITIC

Chairman Yung Chi-kin (6%),

Pacific

and others (6%).

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