Hong Kong billionaire Cheng Yu-tung (鄭裕彤) transferred some of his stock holdings to family funds and agreed to sell US$3.2 billion of Chinese property projects as the 90-year-old tycoon reorganizes his business empire for the next generation.
Cheng handed over shares valued at about HK$3.8 billion (US$490 million) in six Hong Kong-listed companies to a family investment firm called Chow Tai Fook Capital Ltd (周大福控股), according to regulatory filings made late on Monday.
Separately, two Cheng-family companies said yesterday they would sell property assets to Chinese billionaire Hui Ka Yan’s (許家印) Evergrande Real Estate Group Ltd (恆大地產集團).
The moves build on Cheng’s efforts to put his affairs in order since he began stepping back almost four years ago, when he retired as chairman of his flagship company and put his son Henry Cheng (鄭家純) in charge. Cheng Yu-tung’s sprawling businesses range from real estate to jewelry and fashion.
“The point of all this is to pass his wealth on to the next generation,” Hong Kong-based Central Asset Investment chief executive officer Eddie Tam said.
Transferring the wealth early could be beneficial in terms of tax payments, he said.
The transfer of his holdings to Chow Tai Fook Capital took place on Monday last week and included stock in apparel retailer Giordano International Ltd (佐丹奴), Hsin Chong Construction Group Ltd (新昌營造集團), Integrated Waste Solutions Group Holdings Ltd (綜合環保集團), Mongolia Energy Corp (蒙古能源), New Times Energy Corp (新時代能源) and Shengjing Bank Co (盛京銀行).
Shares of all the firms, except Shengjing Bank, have declined by more than 20 percent since February 2012, when Cheng Yu-tung stepped down New World chairman.
Chow Tai Fook Capital owns 79 percent of Chow Tai Fook Holding Ltd, which in turn controls property developer New World Development and Chow Tai Fook Jewellery Group Ltd.
Cheng Yu-tung, whose net worth is estimated at US$10.3 billion, was Hong Kong’s fourth-richest man before the share transfers, according to the Bloomberg Billionaire Index.
The patriarch in early 2012 named his eldest son, Henry, as chairman of New World Development, which has businesses in property, infrastructure, hotels and retail.
The elder Cheng was hospitalized in September 2012 and has not attended public events since.
His son-in-law, Doo Wai-hoi (杜惠愷), said last month that the elder Cheng’s health was improving, the Hong Kong Economic Journal reported yesterday.
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