Cash-rich China Motor Bus (CMB) still has HK$1.7 billion cash in hand even after the payout of HK$800 million in a special dividend to defend a hostile takeover in October.
Instead of 'sitting on the money and doing nothing', the company says it will use the remaining cash to finance property projects.
After yesterday's annual shareholders meeting, chairwoman Irene Ngan Kit-ling said the company was working on several property projects, including the redevelopment of its bus depot in Chai Wan and a property in Kam Hong Street, North Point, on which the right was originally granted to build housing for the company's employees.
The land use of the two properties is subject to modification as CMB lost its public bus franchise to First Bus in September 1998.
Ms Ngan said the company would negotiate with the government land premiums for the proposed redevelopments.
Among the projects, 'the Chai Wan project is going to take a reasonable amount of cash . . . so we are not just sitting here doing nothing', said newly appointed independent director Grahame Stoot.
