Billionaire Pan Won't Take Builder Goldin Properties Private

  • Pan decided not to proceed with the general offer proposed
  • Goldin Properties will sell 18 billion yuan of China assets

Billionaire Pan Sutong won’t make a general offer to buy all the shares of his developer Goldin Properties Holdings Ltd.

Pan, who owns about 64.4 percent of Goldin Properties, decided not to proceed with a general offer, the company said in a statement on Wednesday. The announcement came after the company requested a halt in trading Dec. 8 following a 30 percent share price increase.

Pan first notified the Hong Kong stock exchange he was considering taking the developer private on March 17. He had been considering options from financial institutions, according to the company. Goldin Properties shares will remain suspended.

Shares of sister company Goldin Financial Holdings Ltd. plunged as much as 8.2 percent in Hong Kong Thursday, and traded 1.6 percent lower at HK$19.40 as of 11:11 a.m. Share prices of Goldin Properties and Goldin Financial, both owned by Pan, have been on a roller coaster ride in the past 10 months, causing Pan’s fortune to swing by billions of dollars in a day. Shares of Goldin Financial have soared 165 percent this year, and the property unit’s shares had advanced 55 percent before the halt.

Asset Sale

Goldin Properties, in a separate statement on Wednesday, said it agreed to sell 18 billion yuan ($2.8 billion) of properties in China to an undisclosed associate of a person connected to the company and an independent third party. A further announcement on the disposal will be published “as soon as practicable.”

Goldin Properties’s sole real estate 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 November.

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