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Lai Sun Development ("LSD") is a public company listed on the Hong Kong Stock Exchange SEHK: 0488 established in 1987 by the textiles magnate Lim Por-yen. The Hong Kong Stock Exchange ( also 港交所 abbreviated as HKEX;) is the Stock exchange of Hong Kong. Lim Por-yen ( (1914 &ndash 18 February 2005 was a Hong Kong textiles tycoon and banker [1] His company, Lai Sun Garment, ("LSG") was founded in 1947, is also listed on the Hong Kong Stock Exchange. The Hong Kong Stock Exchange ( also 港交所 abbreviated as HKEX;) is the Stock exchange of Hong Kong. Lai Sun Garment is the controlling shareholder in LSD.

The Company is headed by Peter Lam, son of the founder, who also runs the Media Asia Entertainment Group. Peter Lam Gin-Ngok ( is the chairman and CEO of Media Asia Entertainment Group. Media Asia Entertainment Group ( also known as Media Asia Distribution Ltd

Contents

History

1997 financial crisis

Lai Sun Development, then already under the management of Peter Lam, paid HK$7 billion for Furama Hotel Enterprises in June 1997. [2] Lai Sun acquired a 45. 42 per cent stake for $3. 13 billion, and made a general offer at $33. 50 for each remaining shares at a total cost of $6. 893 billion. [3]

While the other Furama Group hotels became part of the hotels division, Lai Sun Hotels, LSD intended to combine the Furama plot with the Ritz Carlton plot, which it already owned, for redevelopment into a prime office block. Then the Asian financial crisis struck, plunging the entire group into distress and forced asset sales. The Asian Financial Crisis was a period of Financial crisis that gripped much of Asia beginning in July 1997 and raised fears of a worldwide economic meltdown ( [4]

The company had geared itself up heavily in order to finance the acquisition at the top of the market. In Finance, leverage (or gearing) is using given resources in such a way that the potential positive or negative outcome is magnified and/or enhanced It had taken took on $5 billion in bank loans and issued bonds worth more than $2 billion. [5] Its value halved in the ensuing months, plunging the company into crisis. In 2000, the parent company commenced restructuring the group operations. [5] In March 2000, LSD announced that a 65% stake in the Furama would be sold to a 50:50 joint venture between Pidemco, controlled by Temasek Holdings, and AIG for HK$1. Temasek Holdings is an investment company owned by the government of Singapore. 88 billion[6]. As part of the deal, Lai Sun would continue to operate the hotel until its redevelopment, at an annual rental of HK$145 million. [6] The Furama closed in November, and was demolished in December 2001. Together with CapitaLand, and AIG, LSD formed Bayshore Development Group to develop AIG Tower, a 39-storey commercial office block with a gross floor area of 450,000 square foot (41,800 m²). CapitaLand Limited ( Chinese: 嘉德置地 is a Singapore based company listed on the Singapore Exchange, and is Southeast Asia 's largest property AIG and CapitaLand each owned 35 per cent, and Lai Sun owns 30 per cent. [7]

The asset sales to ungear the company continued - debt remained above HK$6 billion as at September 2002, when LSD sold its 32. 75 per cent stake in Asia Television Limited (ATV) to its chief executive, Chan Wing-kee, for HK$360 million

Ritz Carlton plot

The plot was held by Diamond String, a 76. Asia Television Limited ( is one of the two free-to-air television broadcasters in Hong Kong, the other being its arch-rival Television Broadcasts Limited (TVB 57% group-owned entity. In November 2007, it was announced that China Construction Bank would take a 40% stake in the company for a consideration of HK$1. The China Construction Bank ( CCB) ( often abbreviated as 建行 is one of the ' Big four ' Banks in the People's Republic of China. 37 billion, while LSD stake would fall to 60%. The project to redevelop the 14,900 sq ft site as an office tower, due to complete in 2011, will be partly occupied by the CCB. [8][9] The hotel formally closed its doors on 1 January 2008, and has become probably the largest billboard n Hong Kong.

See also

References

  1. ^ Raymond Wang and Teddy Ng, Lai Sun Group founder Lim dies at 93, The Standard, February 19, 2005
  2. ^ Dennis Eng, A little less debt for ailing Lai Sun, The Standard, November 18, 2002
  3. ^ Veronica Luk, Furama stock skyrockets after Lai Sun stake purchase, The Standard, June 21, 1997
  4. ^ Dennis Eng, A little less debt for ailing Lai Sun, The Standard, November 18, 2002
  5. ^ a b Clare Cheung, Lai Sun in move to bail out unit, The Standard, March 11, 2000
  6. ^ a b AIG joins Pidemco in $1.88b bid for 65pc of waterfront site, The Standard, March 01, 2000
  7. ^ Reuters story, Lai Sun joins $4b office venture at Furama site, The Standard, July 30, 2002
  8. ^ 'In Brief', "CCB pays HK$1. The AIG Tower ( Chinese 美國國際集團大廈 in Hong Kong is a 185 m (607 ft The Standard ( is an English Free newspaper of Hong Kong. It was called the Hong Kong Standard and changed to HKiMail during the Internet The Standard ( is an English Free newspaper of Hong Kong. It was called the Hong Kong Standard and changed to HKiMail during the Internet The Standard ( is an English Free newspaper of Hong Kong. It was called the Hong Kong Standard and changed to HKiMail during the Internet This article is primarily about Reuters prior to its 2008 merger with Thomson 37bn for 40% stake in Ritz Carlton owner", Pg B2, South China Morning Post, November 9, 2007
  9. ^ Victor Cheung, "CCB secures new Central abode for $1.3b", The Standard, November 09, 2007
The South China Morning Post, together with its Sunday edition the Sunday Morning Post, is an English-language Newspaper of Hong
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