A brave new world

New World Group reorganization focuses on debt consolidation and synergies.

Under a restructuring announced yesterday Monday, debt has been moved from a weaker subsidiary to what the group fervently hopes will be a stronger one. By refocusing the subsidiaries through asset transfers, increasing the free float, and potentially the market cap, officials hope the huge discount to NAV at which they trade will diminish, although as analysts point out, the overall debt burden has not diminished.

Hong Kong-listed New World Development and its listed subsidiaries New World Infrastructure and Pacific Ports have had a bad year. NWD's struggles stem from Hong Kong's ever-softening housing market, which analysts expect to lead to a second half loss of HK$ 20 million on the back...

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