New World Development to take China unit private

Deal would see New World China Land taken private for HK$18.6 billion (US$2.4 billion), financed mostly through a rights issue.

Hong Kong’s New World Development has offered to take its New World China Land unit private for HK$18.6 billion US$2.4 billion in an effort to gain greater flexibility in managing the China property business.

New World Development is offering HK$6.80 per share to existing shareholders of New World China, a 32% premium over Tuesday’s closing price of HK$5.14, according to a joint statement on Friday. It is also a 53.7% premium over the average closing price for the 30 days prior to Tuesday’s close.

Trading for both companies’ shares has been suspended since Tuesday but resumed Friday. New World Development shares closed at...

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