Chinese Estates Holdings Ltd said it would sell eight commercial and residential property interests in China and Macau to Chi Cheung Investment Co Ltd for HK$10.45 billion (RM4.7 billion). The property group said in a statement late on Tuesday the price tag was based on the first valuation of the Macau property. Chinese Estates also said it would buy 11 Hong Kong property interests from its 61.96 percent-owned Chi Cheung for up to HK$706.1 million. Chi Cheung will settle the purchase by way of issue of 176.57 million new shares at HK$2.66 each to Chinese Estates, an issue of HK$9.29 billion worth of bonds, and the remainder to be paid in cash. Chinese Estates said it intended to develop Chi Cheung into its mainland China and Macau property development arm and all properties held in China and Macau would be held by Chi Cheung on completion of the deal. Trading in shares of Chinese Estates and Chi Cheung, which was suspended on Aug 30, will resume on Wednesday. Chinese Estates had said in August that it had held talks with Chi Cheung about a possible transfer of eight commercial and residential property interests in Shanghai, Beijing, Shenzhen, Chengdu and Macau to Chi Cheung. - Reuters (12/9/07)

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