New World Development’s shares surge on buyout offer of NWS Holdings 

 

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Hong Kong property developer New World Development surged more than 10% to hit a high of HK$21.5 before paring gains to 6.6%. 

Hong Kong’s billionaire Cheng family is offering to buy the NWS Holdings Ltd. shares that it doesn’t own, including a 60.9% block held by New World Development worth HK$21.8 billion ($2.78 billion), and take the company private in a HK$35.5 billion ($4.5 billion) deal. 

Chow Tai Fook Enterprises, the property dynasty’s investment holdings flagship, made an offer of HK$9.15 per share, according to a filing to the Hong Kong stock exchange. The offer is a 14.5% premium over the last closing price.

New World Development currently holds 2.38 billion shares of NWS Holdings, accounting for 60.88% of the company’s issued capital. 

It’s estimated that New World Development will receive about HK$21.78 billion from the deal, of which, HK$4 billion will be handed out as special dividend of HK$1.59 per share, while the remaining part of the funding will be used for debt repayment and operating capital, according to a filing.