Sun Hung buys Lippo Capital

Sun Hung buys Lippo Capital

HONG KONG (Bloomberg): Sun Hung Kai & Co., a Hong Kong-listed financial services company, said it agreed to pay HK$500 million (US$64.5 million) for a 49 percent stake in Lippo Capital Ltd.

SHK & Co. will buy the stake from Indonesia's Riady family, which owns the remaining 51 percent of Lippo Capital, SHK & Co. said in a statement to the stock exchange.

Lippo Capital owns a 49.85 percent stake in Hong Kong-listed brokerage Lippo Ltd., in which SHK & Co. already owns a 1.4 percent stake. SHK & CO. said it will pay for the stake through its internal resources and by bank borrowings.

SHK & Co. was unchanged at 73 HK cents, while Lippo Ltd. dropped 1.7 percent to HK$1.78.

SHK & Co., with 474 employees in Hong Kong, is one of the bigger local securities houses in the city. It is also engaged in foreign exchange, bullion and commodities trading, fund management, and property investment.