The biggest shareholder of Hong Kong developer Sun Hung Kai Properties Ltd had transferred portions of her ownership stakes to her sons. Kwong Siu-hing, who is the widow of Sun Hung Kai founder Kwok Tak-seng, said in a statement yesterday that she handed out a 6.36% ownership stake in each of her sons' family trusts. Thomas and Raymond Kwok also acted as co-chairmen of the Hong Kong developer. Sun Hung Kai is deemed to be the second-biggest developer in the city in terms of value.
Bloomberg noted that the elder Kwong's move came just as the two brothers are expected to face trial in May next year for bribing Hong Kong's former top two government official. In light of the alleged crimes, sons of Thomas and Raymond Adam and Edward Kwok were appointed as the developer's alternate directors last year following their fathers' arrest.
The matriarch had a 43.43% ownership stake through her sons Thomas' and Raymond's family trust and her sons' families, as well as the family trust for eldest son Walter. Following a dispute in 2010, Walter was removed as a beneficiary of the trust under his name, Bloomberg noted. The news agency also added that each of her sons' families get to have a third of her ownership stake.
According to filings to the Hong Kong Stock Exchange, the elder Kwong's holding in Sun Hung Kai dropped to 30.79%. According to Walter's family trust, it was not affected with the transfer and that it stands to receive an equivalent of a third of the original stake as agreed initially.
The Bloomberg Billionaires Index indicated that the transfer resulted to an increase of the brothers Kwong's net worth, with the exclusion of Walter, to USD10 billion each.
Stocks of the Hong Kong developer dropped to 16% in total this year, as compared to the 7.2% decrease in the the Hang Seng Property Index and the 4.4% gain in the Hong Kong benchmark Hang Seng Index.
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