Shares of Chinese Estates Holdings, a former major shareholder of embattled developer China Evergrande, jumped as much as 31 per cent on Thursday after it announced an offer to take the company private for HK$1.91 billion ($245 million).
The Hong Kong developer said Solar Bright Ltd, backed by the family of Chinese Estates' biggest shareholder Joseph Lau, had proposed to take it privately by offering minority shareholders HK$4 apiece, a 38 per cent premium to Chinese Estates' last traded price.
Chinese Estates' former chairman Lau is a member of the so-called "poker club" of Hong Kong tycoons that included Evergrande chairman Hui Ka Yan, who is scrambling to raise funds to pay the company's many lenders and suppliers.
Chinese Estates' shares rose to HK$3.8 in early trade as it resumed trading on Thursday. It was suspended from trading on September 29.
The Hong Kong developer, whose shares were down 42 per cent this year before the trading suspension, said a delisting would reduce the costs and management resources to maintain the listing status, and it could provide more flexibility to implement long-term business strategies.
Chinese Estates was the second-largest shareholder of Evergrande with a 6.48 per cent stake, before selling it down since August to 4.39 per cent as of Thursday.
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Published 07 October 2021, 05:14 IST