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Hopewell Hold (00054) sells Hopewell Infr stake for $9.9B
 Hopewell Holdings (00054) has agreed to sell 2.055 billion shares of Hopewell Highway Infrastructure (00737) , representing 66.69% of the issued share capital of the company, to Shenzhen Investment International Capital Holdings Infrastructure Co. to HK$9.865 billion in cash, or HK$4.8 per share, which has a discount of 3.61% to the closing price of HK$4.98 per share on 29 December 2017.

Upon completion of the deal, the purchaser and parties acting in concert with it will own a total of 66.69% stake in Hopewell Highway Infrastructure and the purchaser will be required to make an unconditional mandatory cash offer for all other issued shares of Hopewell Highway Infrastructure also at HK$4.8 per share.

The total consideration of the offer will be HK$4.927 billion assuming full acceptance of the offer.

The offeror intends to maintain Hopewell Highway Infrastructure's share listing following the close of the offer.

The directors of Hopewell Holdings note that Shenzhen Investment Holdings Co. (SIHC), the ultimate parent company and the guarantor of the offeror, is the flagship investment platform of the Shenzhen Municipal Government and the share acquisition will not only represent a valuable addition to SIHC's existing investment portfolio, but will also be a significant contributor to SIHC's continuous expansion of the connections within the Guangdong-Hong Kong-Macao Bay Area.

The directors of Hopewell Holdings believe that it is a good opportunity for the company to realise its investment in the two highway projects so that Hopewell Holdings may re-deploy a substantial part of the proceeds to: (a) fund the HCII project and the redevelopment of the Hill Side Terrace cluster and 153-167 QRE; (b) further strengthen its general working capital and cash flow position; and (c) to enable Hopewell Holdings to explore new investment opportunities in both Hong Kong and the PRC, in particular the Guangdong-Hong Kong-Macao Bay Area.

Hopewell Holdings expects HK$4.921 billion net gain from the share disposal.

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