Market Chatter: New World Development Could Consider Share Sale to Meet Debt Obligations

MT Newswires Live
03/20

New World Development (HKG:0017) could consider a share sale at the behest of its largest shareholder, the billionaire Cheng family, to meet its debt obligations, Bloomberg reported Friday.

The Chengs were previously seeking fresh capital injection from investors including Blackstone, but the talks faltered as the family de-prioritized options that would require giving up its 45% control in the business.

Instead, New World may offer $4 billion in shares to select shareholders, including the Chengs, or to all shareholders, to meet its funding requirements.

The report cautioned that deliberations were preliminary and details could change.

A share sale would come as the Chengs bet on a rebound in Hong Kong's real estate market that will gather pace, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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