New World Development's (0017) controlling shareholder, the Cheng family, is weighing to inject US$4 billion (HK$31.2 billion) via share sales into the indebted Hong Kong developer, Bloomberg News reported.
The Cheng family believes Hong Kong’s property market is poised for an accelerated rebound, prompting a more cautious stance to investor selection as the urgency to bring in new strategic investors has diminished, according to the report.
The family has considered options such as a US$4 billion share sale, which would require the Chengs, with their approximate 45 percent stake, to contribute around US$1.8 billion.
All discussions are in the initial phase, and details, including investment scale, may be changed.
Earlier, talks between Blackstone's investment and NWD have stalled as the Cheng family resists giving up its control.
