A company in which Hong Kong-listed mainland developer Sun Man Tai Holdings has a 50 per cent share is to take control of troubled Pearl Oriental Holdings, according to Sun Man Tai chairman Qian Yong Wei.
Mr Qian said yesterday China Wan An Group would acquire a 29.9 per cent stake in Pearl Oriental from Wong Kwan, who owns 50.17 per cent of Pearl Oriental, and avoid making a general offer.
The takeover, if realised, will see Mr Wong become the second-largest shareholder of the troubled property company.
The shares of Sun Man Tai and Pearl Oriental have been suspended from trading since December 7.
Mr Qian said China Wan An was half-owned by Sun Man Tai with the remaining interest held by mainland merchants.
He said the acquisition bid was launched because Hong Kong's property market had bottomed out while Sun Man Tai might inject some mainland property projects into Pearl Oriental for future development.