Henderson Land Surges by Most Since '09 as Chairman Boosts Stakeby
Lee bought 5.92 million shares to increase holdings to 72.28%
Price jumps as much as 8.2% after 5.5% gain yesterday
Hong Kong property developer Henderson Land Development Co. Ltd. surged by the most since May 2009 in Hong Kong trading as its billionaire chairman Lee Shau-Kee has been buying shares in the company.
Lee bought 5.92 million shares, increasing his stake to 72.28 percent from 72.1 percent, according to a disclosure filing to the Hong Kong stock exchange Tuesday. He bought the shares at an average price of HK$40.379 per share on Jan. 20, according to the filing.
The shares rose as much as 8.6 percent to HK$43.50 in Hong Kong on Thursday, after gaining 5.5 percent on Wednesday. Henderson’s stock has fallen 10 percent this year compared with a 16.5 percent decline for the Hang Seng Properties Index.
Raymond Ngai, head of Greater China property research at Bank of America Corp.’s Merrill Lynch unit, said in a news briefing on Jan. 20 that Hong Kong developers were selling at steep discount to their net asset value. Henderson’s price-to-book ratio is at 0.5882 according to Bloomberg data.