HONG KONG (Reuters) - Hutchison Whampoa Ltd 0013.HK, controlled by Asia’s richest man Li Ka-shing, and CK Hutchison Holdings Ltd (0001.HK) said on Monday their shareholders have approved their reorganization proposal, bringing it a step closer to completion.
Li’s property flagship Cheung Kong had in February sought shareholders’ approval for part of the restructuring plan that changed the company name and switched its incorporation base to the Cayman Islands.
As part of the proposal, Hutchison shareholder will receive 0.684 CK shares for every one Hutchison share held, and CK shareholders will receive one Cheung Kong Property share for every one CK share held.
Li in January unveiled the reorganization plan under which Hutchison will sell its real estate businesses to Cheung Kong, which will continue to focus on the property sector, a move aiming to boost value and attract investors.
The reshuffle put the property assets into the new company Cheung Kong Property Holdings, with CK Hutchison Holdings Ltd, managing ports, telecoms, retail, energy, aircraft leasing and other businesses.
CK Hutchison and Hutchison Whampoa made the joint filing to the Hong Kong bourse. (here)
Trading in shares of both CK Hutchison Holdings and Hutchison Whampoa, which were suspended on Monday to allow for the shareholder vote, will resume on Tuesday.
Reporting by Donny Kwok and James Pomfret; Editing by Alison Williams