HK Lai Sun sees $32 mln loss in Lai Fung shr sale
Reuters via Yahoo! Asia News
HONG KONG, March 13 (Reuters) – Textile group Lai Sun Garment (International) Ltd. said on Monday it would book a loss of HK$246 million (US$32 million) from the sale of a 20 percent stake in its property unit Lai Fung Holdings Ltd. .
Lai Sun Garment said in a statement the estimated loss would arise because the issue price of HK$0.40 per Lai Fung share is lower than the net asset value of the Chinese property unit.
Singapore’s property firm CapitaLand Ltd. said on Sunday it would pay HK$644 million in cash for 1.61 billion new Lai Fung shares at HK$0.40 each.
Lai Fung said in a separate statement the issue price represented a 43.66 percent discount to the net asset value of HK$0.71 per share as at the end of July 2005.
Lai Sun Garment said its stake in Lai Fung would be drop to 39.96 percent after the deal from 49.95 percent. (US$=HK$7.8)
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