HONG KONG (Reuters) - Cheung Kong Property Holdings Limited (1113.HK), owned by Hong Kong’s richest man Li Ka-shing, said it plans to change its name to CK Asset Holdings Limited, to better reflect the company’s strategy also in infrastructure investment and aircraft leasing.
The company also said in a statement late on Friday it would sell 25 percent of a unit in Canada engaging in building equipment services to its affiliate CK Infrastructure (CKI) (1038.HK) for C$714.92 million ($565.4 million).
The unit, incorporated in the Province of British Columbia, Canada, is principally engaged in the building equipment services sector providing water heaters and HVAC (heating, ventilation and air conditioning) equipment, and other services to homeowners primarily in Ontario, under the consumer brand identity of “Reliance Home Comfort”.
Cheung Kong Property said the share sale would bring a synergy to both because “there are certain infrastructure aspects to the business in which CKI has a track record of managing and operating, enhancing value in the long term and their marketability”.
The unit has an unaudited net asset value of around C$1,144 million as of July 14, 2017.
By changing the company name, the developer said it would better reflect its strategy “to achieve long-term sustainable business growth and value creation through property businesses and the pursuit of quality investments worldwide with stable recurring revenue, such as infrastructure investment, property investment and aircraft leasing”.
Cheung Kong Property, focusing on property, was created in 2015 as part of an overhaul aimed at tackling a valuation discount caused by the conglomerate structure in Li's business empire. (reut.rs/2usYgqV)
Reporting by Clare Jim; Editing by Jacqueline Wong