Henderson Investment to Buy Parent’s Stores for $121 MillionBloomberg News
Henderson Investment Ltd., controlled by Hong Kong billionaire Lee Shau-kee, will buy the operator of the Citistore retail chain from parent Henderson Land Development Co. for HK$934.5 million ($121 million).
The purchase of Camay Investment Ltd., which runs six department stores and a Japanese-brand clothing shop in Hong Kong, requires independent shareholders’ approval, according to a filing to the Hong Kong stock exchange yesterday.
“The acquisition will enable the group to diversify its business and revenue sources, thereby enhancing its resilience to fluctuations in the business environment,” Henderson Investment said in the statement.
The purchase will create sales for Henderson Investment, which reported no revenue last year after the municipal government of Hangzhou in China canceled tolls on a bridge the company operated. A mediation meeting between the company and the city scheduled for mid-September was postponed with no new date yet set, according to the filing.
Camay’s after-tax profit rose to HK$133 million last year from HK$123 million in 2012, the company said. The retailer’s net asset value was HK$15.8 million as of June 30, according to the statement.
Henderson Investment rose 1.5 percent to close at 68 Hong Kong cents in Hong Kong trading yesterday. Henderson Land Development fell 0.2 percent to HK$54.85.
— With assistance by Alfred Cang