Asia’s richest man cleverly sidesteps possibility of family feud | Reuters
Reuters – Octogenarian Hong Kong billionaire Li Ka-shing mapped out a succession plan for one of Asia‘s biggest family empires, ensuring a smoother transition for the Cheung Kong 0013.HK group than that of real estate rival Sun Hung Kai Properties (0016.HK).
Li told investors that while he had no plans to retire, elder son Victor would eventually take over at Cheung Kong Holdings and Hutchison Whampoa (0001.HK), the real estate to telecoms empire founded by Asia’s richest man.
The 83-year-old, whose personal wealth of $25.5 billion ranked him ninth on the 2012 Forbes Billionaires List, also said he would bankroll younger son Richard’s acquisitions, helping him to expand a business centered on Hong Kong’s fixed line carrier PCCW Ltd (0008.HK).
“Victor will assume the stakes I hold in the listed firms, including the 40 percent stake in Cheung Kong and the 35 percent stake in Canada-listed Husky Energy (HSE.TO),” Li told reporters. “He will be responsible for Cheung Kong’s group business in the future.”
The current market value of Li’s 40 percent stake in Cheung Kong and his 35 percent stake in Canada-listed Husky Energy is around HK$140 billion ($18 billion).
Some of Asia’s largest listed companies are family run, and succession plans are tightly held secrets, often only revealed through wills at the death of their founders, leading to bitter internal feuds.
“It is a very good move as it is clear-cut who is having what, avoiding potential struggle for shareholding, and it is good for the long-term stability of the group,” said Conita Hung, head of equity research of Delta Asia Financial.
Sun Hung Kai Properties, Asia’s largest real estate developer, and India’s Reliance group of companies have both been embroiled in bitter family disputes over leadership.
Strange Random Family Business Quote:
“Ultimately, it’s a family business.” – Ivanka Trump
- Asia’s richest man anoints son to head empire (tradenewswire.net)
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- Li Ka Shing (theamotimes.com)
Posted on May 26, 2012, in Video and tagged Asia, Cheung Kong, Cheung Kong Holdings, Hong Kong, Husky Energy, Hutchison Whampoa, Li Ka Shing, PCCW, Reuters, Sun Hung Kai Properties. Bookmark the permalink. Leave a comment.