CK Asset gets nod for share buyback, acquisitions

CK Asset's (1113) acquisition of four assets from the Li Ka Shing Foundation and the HK$19.38 billion share buyback plan were approved at an extraordinary general meeting yesterday.

The acquisition plan won 86.37 percent of the votes, the share buyback 86.4 percent and the "whitewash" resolution 77 percent of the votes.

Commenting on the approvals, CK Asset said the "whitewash" requirement of winning 75 percent of the independent shareholders' votes was a very high threshold and the scheme was a "win-win initiative" for all.

At the annual general meeting, chairman Victor Li Tzar-kuoi said CK Asset's debt ratio was low and so it would seek to acquire businesses with stable incomes. He believed the acquisition plan would boost the company's profitability.

Li said CK Asset is one of the strongest companies in the world as the Covid-19 pandemic had a less-than-expected impact on the firm.

He said CK Asset's performance this year would be better than the last and he expects the property market to be stable in the medium and long term, given the land shortage and low-interest-rate environment.

In addition to participating in the government's land sale plan, property development will also be carried out through agricultural land premiums and hotel property reconstruction.