Haidilao bosses make $1.5b on stake sale

Haidilao International's (6862) top managers cashed out HK$1.56 billion after placing 0.89 percent of its stake to Goldman Sachs, according to the popular hotpot chain operator's announcement yesterday.

The sale came as Haidilao's share price surged nearly 20 percent to HK$35.1, its highest level since the Covid-19 outbreak began in late January. After the announcement, the stock fell 2.56 percent to HK$34.2 yesterday.

SP NP, one of its controlling shareholders, and LHY NP sold 47 million shares in the Haidilao at a HK$33.2 per share Wednesday, representing a price discount of 5.4 percent. LHY NP is backed by Shu Ping, wife of Zhang Yong, who is co-founder, chairman and chief executive of Haidilao, while another co-founder Shi Yonghong and his wife Li Haiyan control LHY NP.

The shareholding of the two companies will be lowered to 7.75 percent each.

After the placing, Zhang and Shu will directly hold a 57.23 percent stake in the company. NP United will continue to own 34 percent of the shares.

Haidilao said both SP NP and LHY NP expressed their continued confidence in the company's business outlook and long-term value and does not expect the placing to affect its business.

Haidilao has gradually reopened its stores in mainland Chinese since mid-March, with some consumers waiting for more than one hour to dine at their restaurants.