Hong Kong billionaire Li Ka-shing, who has been Asia's richest person for nearly two decades, announced Friday a reorganization of his sprawling ports-to-mobile phone conglomerate into two new listed companies.
Li and members of his family control Hong Kong-listed Cheung Kong and its affiliate Hutchison Whampoa. Through a series of stock transactions, the conglomerate will be rebirthed as a company overseeing all of its real estate assets and a second company for non-property businesses.
The 86-year-old Li said in a statement that the reorganization was a "watershed" moment which will result in better returns for shareholders. Investors dislike the existing corporate structure because it lumps together diverse businesses, making them hard to value.
The announcement also foreshadows a change in leadership, with Li expected to eventually hand the reins to his eldest son Victor.
Li has a fortune of $33.5 billion, according to Forbes. He is nicknamed Superman in Hong Kong for his money making abilities. His businesses operate in more than 50 countries and employ 270,000 people.
Asia's richest tycoon announces business empire overhaul
Hong Kong billionaire Li Ka-shing, who has been Asia's richest person for nearly two decades, announced Friday a reorganization of his sprawling ports-to-mobile phone conglomerate into two new listed companies.
Source: AP
