Goldin Financial Surges 43 Percent After Property Unit Halt

  • Goldin Properties stock halted pending notifiable transaction
  • Majority owner Pan disclosed possible privatization in March

Goldin Financial Holdings Ltd., controlled by Chinese billionaire Pan Sutong, rose by the most in more than six years on Tuesday, while its sister company Goldin Properties Holdings Ltd. advanced as much as 32 percent in Hong Kong trading before its shares were suspended.

Goldin Properties said in a statement to the Hong Kong exchange it requested the halt pending the release “of an announcement in relation to a notifiable transaction which contains potential inside information of the company.”

Pan, who owns about 64.4 percent of Goldin Properties, first notified the Hong Kong stock exchange he was considering taking the developer private on March 17, and has issued monthly updates regarding his intentions in keeping with the Takeovers Code. The next deadline for Pan to notify the exchange is Dec. 16.

Shares of Goldin Financial, which is also controlled by Pan, jumped 43 percent, the most since May 6, 2009, to close at HK$17.02 in Hong Kong.

Share prices of both companies have been volatile in the past 10 months. In March, Goldin Financial issued a statement, in response to inquiries by Hong Kong’s Securities and Futures Commission, revealing that Pan owned a 70.29 percent stake at the time, and another 19 unnamed shareholders held 28.29 percent of the company. The company also told prospective investors they should "exercise extreme caution when dealing in the shares," because of the high concentration of ownership.

Personal Fortune

A climb in the shares of Goldin Financial and the property company fueled an increase in Pan’s personal wealth to $22 billion in the first five months of the year. A one-day decline in the middle of May wiped out most of that fortune before the shares recovered some of their gains. Shares of Goldin Financial have soared 127 percent this year, and the property unit’s shares had advanced 55 percent before the halt.

Goldin Properties sole real asset is a 89-hectare (220-acre) parcel of land in Tianjin that includes a 117-story office tower under construction, a Las Vegas-style entertainment district and polo fields surrounded by enormous villas with gold-plated shower heads and wine cellars, as well as dozens of apartment blocks.

Pan took both companies public through backdoor listings. Norges Bank Investment Management disclosed a 1.31 percent stake in Goldin Properties as of the end of 2014, according to data compiled by Bloomberg. Vanguard Group held 0.8 percent at the end of October.

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