Organization

P&R is owned 50:50 by Paliburg (0617) and Regal Hotels (0078), a 69.25% subsidiary of Paliburg. The deal is valued at HK$626.1m based on an AMTD price of US$8.45 and a Cosmopolitan price of HK$1.70. The 9.5m A-Shares in AMTD International are 16.89% of the class, 3.87% of the equity and 0.25% of the voting rights, raising the Paliburg group holding to 34.82% of the class, 8.84% of the equity and 0.58% of the voting rights.

P&R is owned 50:50 by Paliburg (0617) and its subsidiary Regal Hotels (0078). P&R's subsidiary Cosmo sells, on the year-end date, a failed investment in Yuancheng Logistics to Fortis Fund IV Ltd. The circular reveals this is owned by Mr Cong Lin, a director of a controlling shareholder of AMTD Group. In return, Cosmo buys 6.069m A-shares in AMTD Intl from AMTD Group for HK$400m. P&R is also sells 4.98% of Cosmo to International Merchants Holdings for HK$374m. The circular reveals this is 90% owned by Qu Xiao Chuan. In return, P&R buys 5.674m A-shares of AMTD Intl for HK$374m. Finally, P&R sells 50% of a hotel in Sheung Wan to AMTD Group for $270m (net of debt), of which $60m is in cash and the rest an IOU.

With links to the signatories in Webb-site Who's Who.

We take a look at one of the worst connected transactions of 2000, in which Century City International Holdings proposed to spend US$317m on 27% of a fibre optic project from a company controlled by its Chairman. The share swap, priced at 712 times net assets, is hanging over the company and the Chairman has the option to complete it whenever he likes, to avoid dilution if and when the company seeks to reduce its 193% gearing with fresh equity.