Cheng family investment arm seeks HK$5 billion loan from banks
Chow Tai Fook Enterprises, the investment arm of Hong Kong billionaire Henry Cheng's family, is seeking a HK$5 billion loan from banks for general corporate purposes. The financing could provide liquidity for a potential restructuring of New World Development, in which it is the largest shareholder.
Chow Tai Fook Enterprises, the flagship investment arm of Hong Kong billionaire Henry Cheng Kar-shun’s family, is seeking fresh funding of about HK$5 billion from banks, according to a Bloomberg report. The new loan would be used for general corporate purposes, the news agency said, citing sources familiar with the matter.
The company is the largest shareholder of New World Development (stock code 0017). The financing would provide an additional liquidity cushion if it decides to proceed with a large-scale restructuring of the local developer, the report said. Such a move could involve a share sale, it added.
While details are still under discussion, the new loan could be signed as soon as this month, according to the report.