Li Zeju: Chang Shi does not abandon the real estate of the old line, no look at the Hong Kong property market, continue to buy
Cheung Kong Group (01113) and Cheung Kong Infrastructure (01038) and Power Industry (00006) proposed a consortium to acquire the entire share capital of Australian natural gas pipeline company APA Group for A$12.789 billion (approximately HK$75.278 billion). With the approval of the shareholders, the results were approved by 99.73%, 99.96% and 99.85% of the independent shareholders respectively, and the acquisition will be carried out in proportion to 60% of Changshi, 20% of Changjian and 20% of electricity.
Nearly all shareholders passed the purchase of Australia APA
At the shareholders’ meeting, Chess Chairman Li Zeju was asked whether the move represented a pessimistic view of the Hong Kong property market. He stressed that “I am a bearish optimistic about the property market in Hong Kong” and mentioned that Cheung Kong has recently won the MTR (00066) Wong Chuk Hang Station. The Phase 3 Property Development Project will continue to look for real estate investments depending on the location and cost. Li Zeju said, “The two businesses (real estate and fixed income business) are all me, especially when the real estate industry is my old business, I will easily give up.”
At the meeting, some shareholders also asked whether the property market bubble would affect the strategic direction of the group. Li Zeju responded that “it is good to say that the bubble is serious. Many people buy their own homes, and there are more homes and households. You are rich, but you have been a nobleman for many years. Just as you first talk about the real estate industry, I will continue to do it. I will continue to buy good land, and I will earn a certain amount of money. To improve the stability of the group, it is a good thing.”
Li Zeju pointed out that if other competitors pay a higher price to the seller to purchase the shares of APA, the seller promises to compensate the expenses of the group expenses according to the terms, while Cheung Kong promises that if other shareholders do not agree to the joint venture acquisition, the major shareholder Will vote in favor of the agreement to be acquired by Chang Shi alone.
In addition, there are long-term shareholders who ask about the company’s main competitiveness. Li Zeju emphasized that the group is mainly engaged in large projects. “One group has many companies, and the group (the consortium) can eat and fall (capable of acquiring). Opportunities, fewer competitors, and the greater the investment, the better for me, the long-term construction, the long-term, long-sum (00001), electric energy, together, the first to achieve the big (acquisition), the world The company can do a single transaction like APA.”
Li Zeju reiterated that no one is worried about the level of debt of Cheung Kong, which may bring many opportunities to the Group in the event of slight fluctuations in the market in the future. He continued that investment infrastructure may not be as erratic as the real estate market. When the market conditions are unstable, funds will look for safe-haven asset instruments, and the infrastructure business will not be affected by short-term fluctuations.
On the other hand, there are Chuanjianjian considering splitting some of the British assets on the London Stock Exchange. Ye Dejun, vice chairman of Changjian, said that investment banks often have proposals for proposals, but there are no decisions at present and they will be announced separately when there is a decision.
Li Zeju added that listening to the proposal does not mean agreeing to the proposal. It will take a long time from listening to the decision.
The chairman has not changed since the successor
After talking about the chairmanship in May, the development route of the group has changed. Li Zeju said bluntly and reiterated that he has worked in the group for more than 30 years. “With Dad (Li Ka-shing), he has long-term work, partners, and will change (change)… …most of the work is much different from my past.”