Chinese Estates to sell Moon Ocean to Joseph Lau

The Hong Kong listed company Chinese Estates, of which the Hong Kong tycoon Joseph Lau is a major shareholder, former chairman and CEO, has announced that it will sell its subsidiary business Moon Ocean to Mr Lau.
A Chinese Estates announcement revealed that the provisional consideration payable under the Moon Ocean sales and purchase agreement is approximately HKD4,830.20 million.
Nevertheless, it stated that the transaction would not take place before several conditions are met. These include obtaining  independent shareholders’ approval, the board’s approval of the Moon Ocean Special Dividend and such board approval to remain in full force and effect up to the completion of the agreement.
Moon Ocean was previously granted the right to develop the land opposite the Macau International Airport and was planning to build the residential project La Scala.
However, the Macau government has revoked the land grant after the Court of First Instance found Joseph Lau guilty of bribing disgraced Secretary Ao Man Long.
Joseph Lau has launched an appeal against the verdict while Moon Ocean has appealed against the government’s decision.
The Chinese Estates’ announcement has reminded its shareholders that the outcome of the Moon Ocean appeal is still unknown.
It also said that the company’s directors think that sales will allow the company, “to recover the original investment costs (without any impairment) in the Macau land together with its funding cost.”
They also believe that there is no other buyer in the market “who will be willing to buy the Macau land at the original investments’ costs plus funding costs of the group at this point in time.” JPL