Hong Kong. Shares
in Hong Kong real estate giant Sun Hung Kai Properties plunged Friday after
co-chairmen Thomas and Raymond Kwok, two of the city’s richest men, were
arrested in a major corruption probe.
The stock plunged 15 percent as it resumed trade following the
announcement late Thursday that the billionaire brothers, who head one of
Asia’s wealthiest families, had been taken into custody over bribery
allegations.
The Independent Commission Against Corruption (ICAC) said two senior
executives and a former senior government official had been detained in
connection with alleged bribery offenses.
“Another senior executive of the listed company and four others were
earlier arrested for their alleged roles in the same case. While enquiries are
continuing, no further comments will be made,” it said.
The commission did not name the suspects but Sun Hung Kai confirmed the
brothers’ arrest in a statement to the Hong Kong stock exchange on Thursday.
“The company has been required to provide certain information with
regard to the allegations to the ICAC pursuant to a search warrant pertaining
to the company’s premises,” the developer said.
The Kwoks had the full backing of the board and would continue in their
current roles as co-chairmen and managing directors, it added.
State-run RTHK television said the city government’s former number two,
Rafael Hui, had also been arrested. All three suspects had been released after
several hours of questioning, it said.
Hui was a key ally of outgoing Chief Executive Donald Tsang, who is
also facing corruption allegations over favors he has received from some of the
city’s powerful tycoons, including trips on luxury jets and yachts.
Sun Hung Kai is the global financial centre’s biggest property
developer by market capitalisation and the owner of some of the southern city’s
most prominent landmarks.
Its shares bounced off their early lows but were still 11.8 percent
down at HK$98.00 in mid-morning trade.
The Kwoks are Hong Kong’s richest real estate moguls with an estimated
family wealth of $18.3 billion, second only to the city’s richest man, Li
Ka-shing, according to Forbes magazine.
The ICAC arrested senior Sun Hung Kai executive Thomas Chan earlier
this month in relation to the same bribery case. He has been released and is
reportedly back at work.
No details of the allegations have been released, but the South China
Morning Post quoted unnamed sources saying they included millions of dollars in
debts linked to Hui, a luxury apartment and irregularities over land deals.
Credit Suisse said that while the damage to the company’s share price
might be exaggerated, the allegations would “seriously damage” the company’s
corporate image.
Shares in Sun Hung Kai and two of its units, SmarTone
Telecommunications Holdings and SUNeVision Holdings, were suspended from
trading in Hong Kong on Thursday pending the release of price-sensitive information.
Blue-chip developer Sun Hung Kai earlier reported an interim net profit
of HK$21.13 billion ($2.72 billion) for the six months to December 31, 2011.
Revenue from property sales was HK$21.43 billion, and net rental income
amounted to HK$5.28 billion.
The group has properties around Asia, including Hong Kong’s Four
Seasons Hotel, International Finance Centre and recently developed
International Commerce Centre, the city’s tallest building.
“Maintaining high standards of corporate governance is always an
integral part of the group’s business philosophy,” it said in the earnings
report.
AFP
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment