Shareholder of Cheung Kong Holdings voted for the merger proposal with Hutchison Whampoa in general meeting.
In the Li’s restructuring plan was released on 9 January, both of his firms Cheung Kong Holdings (0001.HK) and Hutchison Whampoa (0013.HK) will merge and their property business will spun-off as a separately listed company, CK Property.
Nearly 100% of Cheung Kong Holdings’s shareholders agreed to buy out the remaining shares of Hutchison Whampoa. Almost all of shareholders of Hutchison Whampoa accepted the offer – 0.684 of a CKH Holdings share for every Hutchison share – since they expect better dividend return and company’s valuation.
Hutchison Whampoa will stop trading on May 26 and be delisted on June 3 while CK Property will be listed in the same day. Cheung Kong Holdings will change its name to CK Hutchison Holdings.
Both firms’ shares have risen since the merger plan was announced. CK shares was closed at HK$164.5 , up 28 percent while Hutchison Whampoa was closed at HK$111.8, up 31 percent.
The chairman of both companies, Li Ka Shing said he will raise the dividend payout ratio after the restructuring scheme is completed.
Shareholders of Hutchison Whampoa, as proposed earlier, will get 0.684 shares of CKH Holdings in exchange for one existing share. Hutchison Whampoa will stop trading on May 26 and be delisted on June 3.
Li said CKH always has a global vision, had started investing overseas decades back and will become further internationalized in the future.
The group has arranged for two securities firms to help shareholders dispose of odd lots of shares, and relevant fees on the transactions will be paid by the group, Li said.
In response to the scheme’s benefit for small shareholders, Hutchison director Canning Fok Kin-ning said shares of Hutchison Whampoa have risen since the restructuring plan was released on January 9 and the group’s structure became more clear.