U.S. markets closed
  • S&P 500

    3,911.74
    +116.01 (+3.06%)
     
  • Dow 30

    31,500.68
    +823.32 (+2.68%)
     
  • Nasdaq

    11,607.62
    +375.43 (+3.34%)
     
  • Russell 2000

    1,765.74
    +54.06 (+3.16%)
     
  • Crude Oil

    107.06
    +2.79 (+2.68%)
     
  • Gold

    1,828.10
    -1.70 (-0.09%)
     
  • Silver

    21.13
    +0.09 (+0.42%)
     
  • EUR/USD

    1.0559
    +0.0034 (+0.33%)
     
  • 10-Yr Bond

    3.1250
    +0.0570 (+1.86%)
     
  • GBP/USD

    1.2270
    +0.0009 (+0.07%)
     
  • USD/JPY

    135.2100
    +0.2770 (+0.21%)
     
  • BTC-USD

    21,474.00
    +229.80 (+1.08%)
     
  • CMC Crypto 200

    462.12
    +8.22 (+1.81%)
     
  • FTSE 100

    7,208.81
    +188.36 (+2.68%)
     
  • Nikkei 225

    26,491.97
    +320.72 (+1.23%)
     

Hong Kong billionaire Henry Cheng's family aims to take control of apparel retailer Giordano

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

An investment vehicle owned by the family of billionaire Henry Cheng Kar-shun, Hong Kong's third-richest individual, is seeking to take control of one of the city's biggest apparel retailers in a deal worth as much as HK$2.56 billion (US$326 million).

The family's offshore unit, Clear Prosper Global, offered to buy 75.4 per cent of Giordano International it does not already own for HK$1.88 per share, according to an exchange filing late on Thursday. The offer includes HK$34 million worth of outstanding stock options.

The price represents an 18 per cent premium over Giordano's last traded price of HK$1.59 on June 7, and 32 per cent above the group's net asset value at the end of 2021.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

Adrian Cheng Chi-kong (left), executive vice-chairman of New World Development, and Henry Cheng Kar-shun (centre) pictured in February 2019. Photo: Winson Wong alt=Adrian Cheng Chi-kong (left), executive vice-chairman of New World Development, and Henry Cheng Kar-shun (centre) pictured in February 2019. Photo: Winson Wong>

Giordano's shares soared 15.7 per cent to HK$1.84, its largest jump since August 2011, after trading resumed on Friday. It was suspended on June 8, pending a merger and takeover announcement.

The Cheng family, which controls New World Development and Chow Tai Fook Jewellery Group, intends to retain Giordano's existing business and its employees and key assets, before reviewing its structure and operation to strengthen its business, according to the filing.

Cheng had a net worth of US$26.4 billion as of late February, according to Forbes, ranking him as the third-richest tycoon in the city, after Li Ka-shing and Lee Shau-kee.

Established in 1981, Giordano operates about 2,100 shops predominantly in Asia, including Greater China, Southeast Asia, South Korea, Australia and India, according to its website. It was founded by media mogul Jimmy Lai Chee-ying, who left the board in 1994 and eventually sold his shares.

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 © 2022 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2022. South China Morning Post Publishers Ltd. All rights reserved.