Li Ka-shing's two firms set for merger as Cheung Kong shareholders approve revamp
Favourable vote sees Li Ka-shing's sweeping restructuring plan move closer to completion
Li Ka-shing's massive restructuring plan for his business empire moved a step closer to completion after Cheung Kong (Holdings) shareholders approved the reorganisation proposed for the company and associate Hutchison Whampoa.
Cheung Kong said nearly 100 per cent of votes from shareholders at a general meeting yesterday morning had been in favour of the plan.
Li - Asia's richest man and the chairman of both Cheung Kong and Hutchison, which have a combined market capitalisation of HK$797.24 billion - announced on January 9 that his two flagship companies' non-property assets, including ports, telecommunications, retail, infrastructure and energy, would be injected into newly formed CK Hutchison Holdings, which was incorporated in the Cayman Islands.
All property businesses, including those overseas, of the two companies would be injected into Cheung Kong Property Holdings, which would seek a stock exchange listing and become one of the city's largest-listed property companies.
Li said earlier that the planned reorganisation, described by analysts as the group's biggest restructuring since 1997, was aimed at unlocking value in both companies.