HONG KONG: SOCAM Development, controlled by Vincent Lo Hong-sui, stands to cash in nearly HK$3.35 billion by unloading its entire stakes in two companies.
The real-estate arm of Shui On Group announced yesterday evening that it would sell its entire 45 percent stake in Lafarge Shui On Cement Limited, or LSOC, at HK$2.55 billion, as well as pocket HK$799.9 million by offloading its interest in Lead Wealthy Singapore.
LSOC will be purchased by France- based Lafarge, which now owns 55 percent of LSOC.
The decision is based “on the overall business strategy to exit from the cement operation in the mainland,” the firm said.
It said it is also due to the fact that LSOC is a joint venture while SOCAM is subject to various restrictions having the minority 45 percent stake.
Meanwhile, SOCAM will sell Lead Wealthy Singapore to Wing Tat Development, which will settle the HK$873.7 million worth of loans. Singapore- incorporated LWS owns the Four Seasons Hotel in the 21st Century Tower in Shanghai’s Pudong district.
The disposal will enable the firm to realize most of its luxury inventories amid the sluggish market in high-end property in China, SOCAM said.
SOCAM said it plans to divest its property assets in an orderly manner, and the deal will reduce its bank borrowings and offer cash flow.
SOCAM’s business consists of property development in the mainland, construction business in the SAR and cement operations under LSOC.
It recorded a net loss of HK$1.37 billion last year, expanded from HK$889 million loss a year earlier. SOCAM shares rose 0.14 percent to HK$7.04 yesterday before the news.
