Li Ka-shing to buy into Evergrande Real Estate: report

Oct. 21, 2009 (China Knowledge) - Hong Kong business tycoon Li Ka-shing may spend as much as US$100 million to buy into Evergrande Real Estate, which is expected to raise up to HK$6.05 billion through an initial public offering on the Hong Kong Stock Exchange, a Chinese newspaper reported today.

Reportedly, Evergrande Real Estate has already attracted Cheng Yu-tung, chairman of property firm New World Development<0017> and president of Chow Tai Fook Enterprises, as well as Lau Luen-hung, chairman of Chinese Estates Holdings Ltd<0127>, as cornerstone investors. Cheng and Lau have each invested US$50 million to subscribe for new shares of Evergrande Real Estate.

According to an earlier report from China Knowledge, Li, chairman of Hutchison Whampoa Ltd<0013>, recently raised his shareholding in the company to 51.42% from the previous 51.39%. On Oct. 15, Li bought 1.43 million shares of Hutchison Whampoa for a total of HK$77.73 million. The average share price of the transaction was HK$54.4 apiece.

Hong Kong-based port-to-telecommunication conglomerate Hutchison Whampoa is a subsidiary of Cheung Kong (Holdings) Ltd<0001>, a Hong Kong-based investment firm.