Hong Kong tycoon Joseph Lau and his wife suspected to have deposited 12% of CHINESE EST H shares into CCASS for the first time since the failed privatization in 2021
Hong Kong tycoon Joseph Lau and his wife Chan Hoi Wan's Chinese Estates Holdings recently saw a significant change in their shareholding, with 12.1% of shares deposited into the Central Clearing and Settlement System (CCASS). This may be a precursor to the major shareholder Joseph Lau's family re-depositing shares into the system for future deployment. Previously, Chinese Estates Holdings had proposed a privatization plan, which did not go through. The current stock price of Chinese Estates Holdings is 71.5% lower than the privatization offer price
According to the VESYNC APP, recently, Hong Kong tycoon Joseph Lau Luen Hung and his wife Chan Hoi Wan's Chinese Estates Holdings Limited (00127) experienced a significant change in their position. Based on the Central Clearing and Settlement System (CCASS) data, on last Wednesday (June 19), 2.31 billion shares or 12.1% of Chinese Estates Holdings' shares were deposited into CCASS and transferred to BNP Paribas, with a market value of approximately HKD 263 million at the closing price of HKD 1.14 on that day.
According to the annual report, Joseph Lau Luen Hung and Chan Hoi Wan collectively hold nearly 75% or about 1.431 billion shares of Chinese Estates Holdings, of which 2.31 billion shares are held through Joseph Lau Luen Hung Investments Limited, consistent with the number of shares deposited this time. Therefore, there is a high possibility that the major shareholder, the Joseph Lau family, is re-depositing 12.1% into the system for future deployment. The market generally views large deposits into CCASS as a precursor to corporate capital actions or shareholder transactions.
It is reported that Joseph Lau Luen Hung and Chan Hoi Wan proposed the privatization of Chinese Estates Holdings in October 2021 and held a privatization plan meeting and EGM on December 17 of the same year. During this period, the number of shares registered in CCASS for Chinese Estates Holdings continued to decrease from 98% to around 23%. The market speculates that the major shareholder, the Joseph Lau family, significantly increased their holdings, no longer through CCASS, but through physical shareholding.
However, after the privatization proposal for Chinese Estates Holdings was not approved, the number of shares registered in CCASS remained at a level of 23% to 24% for a long time. This recent re-depositing may reflect a change in the major shareholder's considerations.
It is worth noting that Chinese Estates Holdings proposed privatization at HKD 4 per share in 2021, involving approximately HKD 1.908 billion, while Chinese Estates Holdings is currently trading at only HKD 1.15, a 71.5% discount from the privatization price at that time
