Wheelock takes property arm private for US$889 mil

HONG KONG: Wheelock and Co Ltd said late on Tuesday, April 27, it plans to take its property arm, Wheelock Properties Ltd, private for HK$6.9 billion (RM2.85 billion).

The company said in a joint statement that it plans to offer HK$13 per share, or 143.9% premium over the previous close, for all outstanding shares it did not already own in Wheelock Properties.

The offer price represents a 3.35% discount to the net asset value of HK$13.45 per share as of the end-2009.

Wheelock and Co, which currently holds about 74% of Wheelock Properties, said the proposal would simplify the group's structure and would enable Wheelock to eliminate the listing of a subsidiary, which has not raised any money from the public equity capital market for more than 35 years.

Trading in shares of Wheelock Properties will resume on Wednesday, April 28. -- Reuters