Hong Kong‘s richest man Li Ka-shing’s disguised move to increase his holdings in Cheung Kong has attracted much debate again.
Hong Kong’s richest man, Li Ka-shing, has always been called “Superman” by Hong Kong people, meaning his power is strong and omnipotent. Although these years, Hong Kong has a “second return” of the political storm, “Superman” also has a hibernation, but its every move, but still can dance the wind and clouds.
Some years ago Li Ka-shing sold assets in mainland China, when the size of the “pink” shouted “do not let Li Ka-shing run”, but shouted useless, Li Ka-shing assets in the mainland has long been transferred to a seventy-eight. Who expected that these two days Li Ka-shing’s foundation and the company has some acquisitions and buybacks, there is actually a small Hong Kong pink called “don’t let Li Ka-shing run”, of course, this Time its cry is to run out of Hong Kong.
The thing is that Li Ka-shing’s flagship company, Cheung Kong, issued a notice, mainly about two things, one thing is the Cheung Kong acquisition of Li Ka-shing Foundation assets at HK$170, mainly including the economic interests of the four infrastructure assets; one is Li Ka-shing and his eldest son, Li Zegui new move disguised as an increase in holdings of Cheung Kong, that is, at HK$51 per share, to buy back 333 million shares.
The announcement from the Cheung Kong company said that the proposed acquisition is in line with the company’s established corporate strategy to strengthen stable sources of income, while promising that after the transaction is realized, this year’s dividend will not be reduced compared to last year. The chairman of Cheung Kong, Mr. Li said that the completion of the transaction can make the “share price pretty boy some”, that is, the share price becomes handsome.
Li Ka-shing is a master of financial skills, his words can become the headlines of Hong Kong newspapers, such a big move, of course, there are various kinds of discussion. There is a lot of discussion, depending on the representative, one is to see how the big banks look, one is to see what strange theory of the Square asked.
Cheung Kong Thursday announcement plan, to Friday this day Goldman Sachs, Credit Suisse and other major banks are raising the target price of Cheung Kong, Credit Suisse will target price from 51.9 Hong Kong dollars to 61.9 Hong Kong dollars, Goldman Sachs will also be raised from 49 Hong Kong dollars to 52 Hong Kong dollars. Morgan Stanley, known as DAMANTHA, is a bit more conservative and is also keeping its current target price.
In the preliminary analysis published by various brokerage firms in Hong Kong, Daiwa Capital believes that the Li Ka-shing Family sent a very clear and strong signal: “they intend to increase their holdings in Cheung Kong”, together with Cheung Kong re-starting the buyback, that Cheung Kong’s new proposal can efficiently respond to the Chinese family property stocks facing the “Hong Kong discount ” problem, the bank continued to give a buy rating. This meaning, is greatly bullish.
Besides, the Hong Kong community’s debate, the current situation in Hong Kong on the side of the Hong Kong pinkies, so when the momentum of the argument, there are saying that Superman Lee this time is in the contraction of Hong Kong’s real estate front, and then the European infrastructure projects as the main focus of business, or in the deployment of gradual departure from Hong Kong; some people say Superman is paving the way for privatization, want to privatize is worried about political factors affecting its survival; others say it is the private wealth of the fund into the Others say that he is injecting the fund’s private wealth into a listed company for insurance purposes.
There are many different arguments. But past performance shows that Li Ka-shing has always been the first move, and market changes will be revealed only after a year and a half.
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