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New World Development to Take Unit Private for $2.4 Billion

Billionaire Cheng Yu-tung’s New World Development Ltd. offered HK$18.6 billion ($2.4 billion) to take its China property unit private after shares in the arm traded below net asset value for more than six years.

Shareholders of New World China Land Ltd. will get HK$6.8 a share, 32 percent more than the last closing price before today, the companies said in a joint statement to the Hong Kong stock exchange today. The unit’s shares surged while New World Development plunged the most since October 2011 after the company also said it will raise HK$14 billion selling rights shares at a 36 percent discount.