New | Sun Hung Kai to sell 70 per cent stake in brokerage unit to Everbright Securities

Sun Hung Kai & Co (SHKCO), one of Hong Kong’s leading financial companies, is going to sell a 70 per cent stake in its wholly-owned Sun Hung Kai Financial Group to mainland China’s eighth-largest brokerage, Everbright Securities, for HK$4.1 billion, it said in an announcement posted to the Hong Kong Stock Exchange yesterday.

Sun Hung Kai Financial is one of the largest Hong Kong-based brokerage and wealth management service providers with over HK$85 billion in client assets under management, according to company reports. It reported profit after taxation of HK$174 million in 2014.

SHKCO said the transaction marks a further development of its alliance with China Everbright Group, the Hong Kong-listed parent of Everbright Securities, after they formed a partnership in consumer finance and wealth management businesses through China Everbright Bank.

“This transaction is in line with our long stated strategy to leverage our strong operational platform and gain greater access to the fast developing wealth management sector in China,” Lee Seng Huang, Group Executive Chairman of SHKCO, said in the release.

Xue Feng, Vice Chairman and President of Everbright Securities said: “Sun Hung Kai Financial’s strength in the wealth management business is highly complementary to our existing securities business in Hong Kong. In order to protect the interest of employees and clients, the plan, upon completion, is to run the two businesses independently for a relatively long period of time and no management changes are anticipated.”

SHKCO is 55 per cent owned by Allied Properties. United Asia Finance, SHKCO’s other major subsidiary, is not involved in the deal with Everbright. SHKCO said it will retain a 30 per cent stake in Sun Hung Kai Financial.