Occupy Central 'not reason behind Li Ka-shing's reorganisation of business empire'
Director of Husky Energy unit also denies changes meangroup is getting out of HK
Billionaire Li Ka-shing's reorganisation of his business empire has nothing to do with Occupy Central, a director of one of his firms insists.
Frederick Ma Si-hang, a former commerce minister and a director of Li's Canadian oil and gas unit Husky Energy, also denied the shake-up represented the redomiciling of the empire to the tax-friendly Cayman Islands.
Li shocked the city on Friday by announcing that non-property assets of his Cheung Kong (Holdings) and its subsidiary Hutchison Whampoa would be injected into a new company, Caymans-incorporated CK Hutchison Holdings. Property interests will go into another new Caymans-registered entity, Cheung Kong Property Holdings, which will seek a separate listing.
The move followed months of speculation that Li, the plastic-flower factory boss turned property magnate known as "superman" for his investing prowess, was losing interest in his hometown amid political uncertainty.
"An arrangement like this is not done in one day or two. It needs a long time for planning," Ma said. "I believe they have thought about it for a long time before making the move, and it is not so much related to Occupy Central." Li did not comment directly on the aims of the Occupy protesters during the 79-day street blockade but did urge the protesters to go home to avoid any "regrets".
The tycoon said on Friday that more than 75 per cent of companies listed in Hong Kong in the past decade were incorporated in the Caymans, including Chinese state-owned enterprises.
Ma agreed that the changes did not amount to moving the empire's domicile.
The announcement was made after the close of the Hong Kong bourse. But US depository receipts - through which American investors can trade in the two companies' securities - rose 10 per cent on Friday evening.
Alex Wong, an asset manager at Ample Finance Group, expects the two firms' share prices to rise tomorrow.
"Separating property and conglomerate businesses makes [investment choices] clearer for investors with different preferences. It also helps unlock the value, especially of Cheung Kong's property business," Wong said.
BNP Paribas analyst Wee Liat Lee said the removal of Cheung Kong's layered holding structure would help narrow a deep 33 per cent discount to net asset value in the valuation of the company.
