Chan Hoi-wan, executive director of Chinese Estates Holdings and wife of convicted fugitive Joseph Lau Luen-hung, is now the de facto controller of the Hong Kong-listed developer, after her stepson Lau Ming-wai transferred his entire stake in the company to her three children.
Lau Ming-wai, 39, chairman of Chinese Estates Holdings, transferred 476.4 million shares or 24.97 per cent stake to his half siblings, according to a filing to the Hong Kong stock exchange after the market close on Thursday.
Lau Ming-wai transferred the stake via wholly-owned Century Frontier to Solar Bright, which is wholly-owned by Sino Omen. Chan, in turn, is the trustee of Sino Omen for her underage children.
The share transfer means that the 40-year-old former celebrity journalist, together with her children Lau Chung-hok, aged 7, Lau Sau-wah, 11 and Lau Sau-yee, 2, now own 1.43 billion shares, or 74.99 per cent stake, in Chinese Estates.
Joseph Lau Luen-hung and his wife Chan Hoi-wan attend real estate tycoon Walter Kwok Ping-sheung's funeral service at St John's Cathedral in Central, on November 1, 2018. Photo: Felix Wong alt=Joseph Lau Luen-hung and his wife Chan Hoi-wan attend real estate tycoon Walter Kwok Ping-sheung's funeral service at St John's Cathedral in Central, on November 1, 2018. Photo: Felix Wong
The shares rose 3.8 per cent before the announcement. Based on the closing price of HK$4.95 on Thursday, Chan and her children's stake amount to HK$7.07 billion.
"The transfer is due to Lau Ming-wai's personal investment plan," a source said, who added that he will continue in the chairman's post. Another source said that the chairman may have divested his stake in the company to pursue a government role. Lau Ming-wai currently serves as deputy chairman of the financially troubled Ocean Park.
Lau Ming-wai, chairman of Chinese Estates, is the eldest son of founder Joseph Lau. Photo: Jonathan Wong alt=Lau Ming-wai, chairman of Chinese Estates, is the eldest son of founder Joseph Lau. Photo: Jonathan Wong
The share transfer comes a week after local media reported last Friday that the 68-year-old founder of Chinese Estates was in poor health. The shares rose more than 60 per cent on the news, but the company quashed speculation, saying that the tycoon was doing fine. A company spokesman again reiterated on Thursday that Joseph Lau was in good health.
Kenny Ng Lai-yin, securities strategist at Everbright Sun Hung Kai, said shares are generally pushed up by such transfers consolidating ownership in companies controlled by rich families. Investors find it reassuring as there will be less disputes when making decisions for the company's future development, he added.
SCMP Graphics alt=SCMP Graphics
In 2017, Hong Kong's fourth richest individual transferred his 74.99 per cent shareholding in the company to his wife and eldest son when he was doing poorly after a kidney transplant surgery. Lau Ming-wai had gained 476.4 million shares representing 24.97 per cent of Chinese Estates through Century Frontier. The tycoon also distributed 954.2 million shares representing 50.02 per cent in the company to Sino Omen with Chan as the trustee.
Joseph Lau has long drawn media attention for his wealth and high-profile romantic relationships with multiple women. He married Chan, a former Apple Daily entertainment reporter and his long-time partner, in 2016, after announcing his break-up with then-girlfriend Dr Yvonne Lui Lai-kwan through several full-page newspaper statements.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.