Asia's richest person Li Ka-shing announces overhaul of ports-to-mobile phones conglomerate
Hong Kong billionaire Li Ka-shing, who has been Asia's richest person for nearly two decades, is reorganizing his sprawling ports-to-mobile phone conglomerate into two new listed companies.
Li and members of his family control Hong Kong-listed Cheung Kong and its affiliate Hutchison Whampoa. Through a series of stock transactions, the conglomerate will be rebirthed as a company overseeing all of its property assets and a second company for non-property businesses.
The 86-year-old Li said in a statement that the reorganization was a "watershed" moment which will result in better returns for shareholders. Investors dislike the existing corporate structure because it lumps together diverse businesses, making them hard to value.
The announcement also foreshadows a change in leadership, with Li expected to eventually hand the reins to his eldest son Victor.