Lippo to sell HK property unit to China

Lippo to sell HK property unit to China

HONG KONG (AFP): Indonesian-owned Lippo Ltd. said yesterday
it would sell 8.1 percent of its Hong Kong-listed property unit
to a Chinese state-owned company for 583 million Hong Kong
dollars (US$75 million).

Under the deal, Lippo's shareholding in Hong Kong China Ltd.
will be reduced to 62 percent while the stake held by China
Resources (Holdings) Co. Ltd. will rise to 9.6 percent, the
company said.

Hong Kong China will be renamed Lippo China Resources Ltd. to
reflect closer ties between the Indonesian-owned company and
China Resources, the flagship of China's Ministry of Foreign
Trade and Economic Cooperation.

The Lippo subsidiary used to be the Hong Kong-listed arm of
Japanese property developer EIE, which has since collapsed.

Lippo's disposal is part of a group reorganization which will
see a China Resources property affiliate, China Resources
Enterprise Ltd., setting up a 50-50 venture with Lippo.

The joint venture will own 74.4 percent of HKCB Bank Holding
Co. Ltd. which owns 50 percent of Hong Kong Chinese Bank Ltd., a
commercial banker servicing small and medium-sized trading
companies here.

China Resources last week acquired 50 percent of the bank for
two billion Hong Kong dollars (258 million US).

China Resources chairman Zhu Youlan said yesterday China
Resources Enterprise would ultimately hold 75 percent of Hongkong
Chinese Bank, which it will rename China Resources Bank.

Lippo said the reorganisation would "enable Lippo and China
Resources Group to build on their existing relationship and
expand that relationship and cooperation into other areas of
financial services.

"By becoming a direct partner with Lippo in the company
controlling HKCB Bank Holding, CRE will participate in the
broader range of financial services business, including
securities and insurance, which are carried on by HKCB Bank
Holding. It will enable HKCB Bank to consolidate the entire
profits of Hongkong Chinese Bank Ltd," it said.