Henderson Investment's Sale
Of Stakes to Parent Is Cleared

Shareholders of Henderson Investment Ltd. approved the company's plan to sell its holdings in two Hong Kong-listed companies to its parent, blue-chip developer Henderson Land Development Co., for 12.11 billion Hong Kong dollars (US$1.55 billion).

Under the proposal, Henderson Land, Hong Kong's third-largest property developer by market capitalization, will acquire Henderson Investment's 31.36% stake in Hong Kong Ferry (Holdings) Co. and its 44.21% stake in Miramar Hotel & Investment Co., to simplify the group's structure.

Colin Lam, an executive director of both Henderson Land and Henderson Investment, said 84.7% of Henderson Investment's shareholders approved the plan, while 10% voted against it. "I am very happy that the deal is approved, but I am also very surprised to know that about 10% of our shareholders still rejected the proposal," he said after the shareholders meeting.

Henderson Land has tried to buy out 67.94%-owned Henderson Investment twice in the past 4½ years. On both occasions, it failed to win enough support from Henderson Investment's minority shareholders.

Mr. Lam said Henderson Land has no plans to take Henderson Investment private.

Henderson Investment, which said it will book a gain of HK$926 million from the stake sales, plans to distribute as much as HK$5 a share to shareholders upon completion of the deal, which could be as early as July, Mr. Lam said.

After the transactions, Henderson Investment's main asset will be its 38.47% stake in blue-chip gas distributor Hong Kong & China Gas Co., known as Towngas. It also has infrastructure projects in mainland China.

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