Asian Growth Properties' shares zoom higher on reorganisation plans
Shares in Asian Growth Properties (AGP) zoomed more than 80% higher on its plans to reorganise by selling assets outside mainland China to SEA Holdings, which owns 97.2% of the company.
Asian Growth Properties Ltd Com Shs (DI)
1.05p
16:34 19/12/17
Real Estate Investment & Services
2,190.81
15:59 23/04/24
This would lead to a special dividend payment to shareholders of HK$10.35 a share.
AGP said it had entered into a conditional sale agreement to sell its assets outside China to SEA for HK$8.91bn, which was about £913.6m in sterling terms.
SEA would get its dividend by reducing the amount it was owed from the consideration for the assets it was buying.
The assets included a central London commercial property, Crowne Plaza Hong Kong Causeway Bay in Hong Kong, bank balances and cash of the subsidiary being sold. There were also some short-term treasury investments.
SEA proposed making a distribution in specie, which meant that all of the shares held in AGP by SEA would be distributed to the shareholders of SEA.
Nan Luen International was SEA's controlling shareholder. It planned to offer AGP shareholders after the distribution in specie the opportunity to convert their shares to ones in SEA.
Assuming AGP's proposals were successful, it would be left with assets in mainland China.
SEA would hold all of AGP's current non-China assets, with Nan Luen International being its major shareholder, and that of SEA.
At 12:50 GMT, shares in AIM-listed AGP were up 82.79% to 111.5p each, having pushed above 114p earlier in the session.