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28
June 2000
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| (Hong Kong) Tem Fat Hing Fung
Holdings Limited ('TFHF') today announced a partnership with
Cheung Kong (Holdings) Limited ('Cheung Kong') and Mr Li Ka-shing
to form a joint venture to expand its gold business in the world
gold market. |
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| Under this agreement, TFHF,
Cheung Kong and Mr Li Ka-shing will hold 49%, 49% and 2% respectively
of a new joint venture company. A put-call option arrangement
has been entered into by this joint venture and TFHF for approximately
42% of RNA Holdings Limited (RNA), a subsidiary of TFHF, at
HK$0.60 per RNA share, the price of RNA's shares prior to its
suspension of trade on June 19, 2000. If the option is exercised
and completed, a general offer may be required by the Code on
Takeovers. |
|
| The present structure has been
purposely designed to reflect the true partnership spirit between
Tem Fat Hing Fung and Cheung Kong: it is also a demonstration
of Mr Li's confidence in the potential of the new joint venture. |
|
| Mr Raymond Chan, Chairman of
TFHF said: "We are excited to join hands with Cheung Kong, our
long-term business partner, to expand our business in the world
gold market. With its extensive international business network
and strong branding, RNA is well-positioned to face the challenges
ahead." |
|
| Mr Edmond Ip, Executive Director
of Cheung Kong said: "We are very happy to partner with such
an experienced and established player in the gold industry to
develop the gold business further on a global basis. While Cheung
Kong will benefit from TFHF's expertise in the gold business,
TFHF will be able to capitalize on Cheung Kong's capabilities
in technology, branding and marketing, as well as its business
network. This is surely a win-win situation for both parties." |
|
| The put-call option is exercisable
for six months. |
|
Cheung Kong (Holdings)
Limited
Cheung Kong (Holdings) Limited is the flagship company of the
Cheung Kong Group which consists of Cheung Kong (Holdings) Ltd,
Hutchison Whampoa Ltd, Cheung Kong Infrastructure Holdings Ltd
and Hongkong Electric Holdings Ltd. All members of the Cheung
Kong Group are constituent stocks of Hang Seng Index, and the
combined market capitalization of the four companies in the
Group is about HK$700 billion. The Cheung Kong Group is one
of Hong Kong's most diverse conglomerates with businesses ranging
from property development, infrastructure, and port operations
to energy, retailing, hotels, and telecommunications. With over
80,000 employees worldwide, Cheung Kong Group operates in 24
countries. |
|
Tem Fat Hing
Fung Holdings Limited
Founded in 1951, Tem Fat Hing Fung (Holdings) Limited ("TFHF")
began its business in bullion trading business in Hong Kong
and further expanded its business to jewelry wholesale and property
investments. The company was publicly listed in 1990. In view
of positive opportunities in Asia, the metals business operation
of TFHF and its investments in the associated companies relating
to non-ferrous metals businesses were demerged and transferred
to RNA Holdings Limited ("RNA") which was listed in December
1996. In 1997, TFHF acquired the publicly listed Can Do Holdings
Limited (stock code:172), formerly known as Island Dyeing and
Printing Company Limited, which has become the property arm
of TFHF Group. |
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